Transactions Costs Refer to

question 19

Multiple Choice

Transactions costs refer to

• A)fixed costs of capital.
• B)variable costs of labor.
• C)costs of exchange unrelated to production costs.
• D)economies of scale.

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Definitions:

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company, known as the parent company.

Intra-Entity Transfers

Transactions involving the exchange of goods or services between divisions within the same parent company.

Consolidated Statement

A financial document that combines the accounting information of a parent company and its subsidiaries, presenting it as one entity.

Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business.