Standard Costs Rather Than Actual Costs Should Be Used in Transfer-Pricing

question 33

Multiple Choice

Standard costs rather than actual costs should be used in transfer-pricing methods because:

• A) financial accounting rules (GAAP) require the use of standard costs.
• B) tax rules require the use of standard costs.
• C) standard costs are more readily available than actual costs.
• D) standard costs facilitate a professionally negotiated, amicable settlement between the buying and selling divisions.
• E) inefficient producing divisions could pass on their inefficiencies to buying divisions in the transfer price.

---

Definitions:

Student Protests

Demonstrations or actions taken by students to voice dissent or demand change on issues ranging from political to educational reforms.

Suppression

The act of forcibly putting an end to something, such as dissent, movements, or activities, often through authoritative measures.

Mexico

A country in the southern portion of North America, known for its rich cultural heritage, history, and diverse ecosystems.

Democratic National Convention

A series of presidential nominating conventions held every four years by the United States Democratic Party to select the party's candidate for President.