Under Which Transfer Pricing Scheme Is the Transfer Price Set

question 90

Multiple Choice

Under which transfer pricing scheme is the transfer price set equal to the selling division's actual cost of production or set equal to the cost of production if the selling division were operating at maximum efficiency?

• A) exchange autonomy
• B) mandated full cost
• C) mandated market based
• D) dual pricing

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Definitions:

Savings

Money that has been set aside for future use, typically stored in a financial institution or invested, allowing for growth over time.

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Highly detailed and vivid memories of significant or emotional events, which seem to be recorded in the mind like a photograph.