The Cost Price Approach for Transfer Pricing Is Most Often

question 92

True/False

The cost price approach for transfer pricing is most often used between responsibility centers organized as cost centers that are not concerned with the revenue.

---

Definitions:

Preoperational Stage

According to Piaget, the stage of thinking between infancy and middle childhood, in which children are unable to decenter their thinking or to think through the consequences of an action.

Decenter

The cognitive ability to consider multiple aspects of a situation simultaneously, characteristic of more advanced stages of cognitive development.

Sensorimotor Stage

Piaget’s term for the stage of infancy during which the process of adaptation consists largely of coordinating sensory perceptions and simple motor behaviors to acquire knowledge of the world.

Centration

The tendency, particularly seen in early childhood, to focus on one aspect of a situation while neglecting other important features.