A Primary Goal of Transfer Pricing Is To

question 98

Multiple Choice

A primary goal of transfer pricing is to:

• A) Agree on a price for external sales.
• B) Obtain a high transfer price for the purchasing unit.
• C) Obtain a high transfer price for the selling unit.
• D) Motivate decision makers to act in the best interests of the organization.
• E) Minimize recordkeeping costs.

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Definitions:

Inconsistency

The lack of uniformity or steadiness in quality, performance, or output in products or services over time.

Regular Customers

Individuals or entities that frequently do business with a company, often contributing to a stable base of recurring revenue.

Philadelphia Phillies

An American professional baseball team based in Philadelphia, Pennsylvania, competing in Major League Baseball as a member of the National League.

Inconsistent

Being inconsistent means lacking uniformity or steadiness, often leading to unpredictability or variability in actions, results, or performance.