All of the Following Are True of Market-Based Transfer Prices

question 105

Multiple Choice

All of the following are true of market-based transfer prices except:

• A) They generally motivate the correct economic decision.
• B) They can be determined for all goods and services transferred internally.
• C) They may lead to goods and services purchased externally by the purchasing unit.
• D) To the extent they exist, they are objective.
• E) They provide an independent valuation for internal transfers.

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Definitions:

Childrearing

The process of bringing up, caring for, and supervising children, often emphasizing values, ethics, and social behaviors.

Restrictiveness-permissiveness

A scale measuring parenting styles based on the degree of control and freedom parents afford their children.

Instrumental Behavior

Behavior directed toward obtaining rewards or outcomes in a given environment.

Possession-oriented

A term likely referring to individuals or cultures that place high value on owning or acquiring material goods.