There Are Five Possible Methods of Transfer Pricing Between National

question 51

Multiple Choice

There are five possible methods of transfer pricing between national divisions of a company, which are:

• A) sale at the local competitive cost, sale at the local manufacturing cost plus a standard mark-up, sale at the cost of the most efficient producer in the company plus a standard mark-up, sale at negotiated prices on those prevailing in the foreign market and arm's length sales using the same prices as quoted to independent customers.
• B) sale at the local manufacturing cost, sale at the local manufacturing cost plus a standard mark-up, sale at the cost of the most efficient distributor in the company plus a standard mark-up, sale at negotiated prices on those prevailing in the foreign market and arm's length sales using the same prices as quoted to independent customers.
• C) sale at the local manufacturing cost, sale at the local manufacturing cost plus a standard mark-up, sale at the cost of the most efficient producer in the company plus a standard mark-up, sale at competitive prices on those prevailing in the foreign market and arm's length sales using the same prices as quoted to independent customers.
• D) sale at the local manufacturing cost, sale at the local manufacturing cost plus a standard mark-up, sale at the cost of the most efficient producer in the company plus a standard mark-up, sale at negotiated prices on those prevailing in the foreign market and arm's length sales using the same prices as quoted to independent customers.
• E) sale at the local manufacturing cost, sale at the local manufacturing cost plus a standard mark-up, sale at the cost of the most efficient producer in the company plus a standard mark-up, sale at negotiated prices on those prevailing in the foreign market and arm's length sales using the same prices as quoted to dependent customers.

Identifying factors that influence creativity and innovative decision-making.

Understanding the concept of escalating commitment and how to avoid its trap.

Recognizing the importance of questioning assumptions to enhance creativity.

Understanding the impact of cognitive errors like framing, confirmation, and representativeness biases on decision-making.

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Definitions:

Self-defeating

Behaviors or attitudes that hinder personal progress or success, often despite one's own interests or objectives.

Dysfunctional Support

Assistance or support that instead of helping, creates more problems or hinders the situation or individual.

Response Pattern

Describes the typical ways in which an individual reacts to stimuli or situations, often based on past experiences or psychological makeup.

Micro-culture

A smaller culture or subculture within a larger cultural context, characterized by its own norms, values, and practices.