The Transfer Price Between Subsidiaries That Maximizes Profit for the Parent

question 71

Multiple Choice

The transfer price between subsidiaries that maximizes profit for the parent company

• A)is the marginal cost of the producing subsidiary.
• B)is the monopoly price of the producing subsidiary.
• C)cannot be determined in the absence of non-production cost considerations such as taxes.
• D)is the price that minimizes the purchasing subsidiary's marginal cost.

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Definitions:

Memory Modules

Physical components that house memory chips, usually in the form of RAM sticks, inserted into the memory slots on the motherboard to increase a computer's system memory.

Team Player

An individual who actively contributes to their group in order to complete tasks, meet goals, or manage projects effectively.

Unbuffered Memory

Memory that does not delay all data transfers by one clock tick to ensure accuracy as registered memory does. Used in low- to medium-powered computers.

Registered Memory

A type of computer memory that contains registers for buffering the data between the memory module and the memory controller to stabilize the system and improve reliability.