Match the Items in the Two Columns Below by Entering

question 87

Short Answer

Match the items in the two columns below by entering the appropriate code letter in the space provided.
A. Cost-plus pricing
B. Market-based transfer price
C. Markup
D. Negotiated transfer price
E. Outsourcing
F. Target selling price
G. Time-and-material pricing
H. Virtual companies
____ 1. Contracting with an external party to provide a good or service.
____ 2. An approach to cost-plus pricing that uses two pricing rates.
____ 3. Product's selling price is determined by adding a markup to a cost base.
____ 4. Transfer price is determined by agreement of division managers.
____ 5. Companies that have no manufacturing facilities.
____ 6. Percentage applied to a product's cost.
____ 7. Price that will provide the desired profit on a product.
____ 8. Transfer price is based on existing prices of competing products.

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Definitions:

Recognized as Shareholder

Being officially acknowledged or identified as having legal ownership and rights in a corporation's shares.

Due Diligence

An investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or transaction with another party.

Business Decision

A judgment or choice made in the context of managing a company, often involving resource allocation and strategy.

Pooling Agreement

An agreement made by shareholders whereby they promise to vote the same way on a particular issue. Also called shareholder agreements and voting agreements.