The Transfer Price Approach That Will Result in the Largest

question 21

Multiple Choice

The transfer price approach that will result in the largest contribution margin to the buying division is the

• A) cost-based approach.
• B) market-based approach.
• C) negotiated price approach.
• D) time-and-material pricing approach.

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Definitions:

Extinction

In psychology, the gradual weakening of a conditioned response when the conditioned stimulus is repeatedly presented without the unconditioned stimulus.

Classical Conditioning

A method of learning wherein two stimuli are continually coupled; over time, the reaction initially incited by the second stimulus comes to be incited by the first stimulus alone.

Acquisition

Acquisition in the context of psychology refers to the initial stage of learning when a response is first established or a new skill is begun to be acquired.

Classical Conditioning

Learning through the relationship between a naturally present stimulus and one that comes from the environment.