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For each of the following,identify whether it BEST relates to (M)arket-based,(C)ost-based,(N)egotiated,(A)dministered,or (All)types of transfer pricing.
a.Bargaining between selling and buying units (M / C / N / A / All)
b.Objective and provides the proper economic incentives (M / C / N / A / All)
c.145% of full costs (M / C / N / A / All)
d.Avoids confrontation and generally used when a transaction occurs frequently (M / C / N / A / All)
e.Internal product transfers are required (M / C / N / A / All)
f.Prices listed in a trade journal (M / C / N / A / All)
g.Prices do not reflect pure economic considerations nor accountability considerations (M / C / N / A / All)
h.Goal is to motivate decision makers to act in the organization's best interest (M / C / N / A / All)
i.Provide no incentive to the supplying division (M / C / N / A / All)
j.Reflects support of the controllability principle (M / C / N / A / All)
Efficient
The characteristic of a resource allocation that maximizes the total surplus received by all members of society.
Production Possibilities Frontier
A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, technology, etc.), assuming efficient use of resources.
Technological Advance
The introduction and application of new technologies and methods that improve productivity and efficiency.
Unemployment
A situation where individuals who are able and willing to work are unable to find jobs.
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