For Each of the Following Transfer Price Descriptions or Operating

question 19

Essay

For each of the following transfer price descriptions or operating situations, tell which of the general methods of transfer pricing it is probably categorized as:
a. Bargaining between selling and buying units
b. Budgeted costs
c. 145% of full costs
d. Internal product transfers are required if goods are available internally
e. Manufacturing plus marketing plus distribution plus customer service costs
f. Prices listed in a trade journal
g. Selling price less normal sales commissions
h. Variable manufacturing cost plus a mark- up

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Definitions:

BMW

A German multinational corporation which produces luxury vehicles and motorcycles.

Corporate Blog

An online publication created and maintained by a corporation to share insights, ideas, and information relating to its industry or operations.

Nuts About Southwest

Nuts About Southwest was a pioneering airline blog created by Southwest Airlines, focusing on engaging customers through behind-the-scenes insights and stories.

Southwest Airlines

An American airline known for its low-cost travel options, customer-friendly policies, and an organizational culture emphasizing employee satisfaction and operational efficiency.