Which of the Following Is an Example of a Transfer

question 31

Multiple Choice

Which of the following is an example of a transfer payment?

• A) wages paid to military personnel
• B) benefits paid to Social Security recipients
• C) purchase of aircraft by the Department of Defense
• D) payments made to a contractor for construction of a highway

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Definitions:

Transfer Price

The cost incurred for products or services exchanged between the divisions or departments within the same organization.

Minimal Acceptable

The lowest level or standard considered satisfactory or acceptable for a specific purpose or requirement.

Variable Cost

Costs that change in proportion to the level of production or business activity, such as materials and labor.

Transfer Price

The price at which services or goods are sold between divisions within the same company or between subsidiaries.