Which of the Following Transfer-Pricing Methods Always Achieves Goal Congruence

question 133

Multiple Choice

Which of the following transfer-pricing methods always achieves goal congruence?

• A) a market-based transfer price
• B) a cost-based transfer price
• C) a negotiated transfer price
• D) full-cost plus a standard profit margin

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Definitions:

Filing Status

A category that determines the rate at which an individual is taxed, based on marital status and sometimes other factors.

Economic Benefit

The advantage gained from salary, wages, investments, or any other source that increases an individual's wealth or resources.

Exempt

Not subject to an obligation, duty, or requirement; often used in the context of income that is not subject to taxation.

Capital Gains Rates

The tax rates applied to the profit made from selling an asset for more than its purchase price.