According to a 2010 Study by Ernst & Young, What

question 18

Multiple Choice

According to a 2010 study by Ernst & Young, what percentage of MNC respondents had experienced a transfer pricing audit somewhere in the world since 2006?

• A) More than 10%
• B) More than 25%
• C) More than 66%
• D) More than 90%

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Definitions:

Unused Capacity

The portion of a company's production potential that is not being utilized to manufacture goods or provide services.

Estimated Activity

An approximation of the amount of work or level of effort needed for a particular task or project.

Activity at Capacity

The level of operational activity that a company can achieve using its current resources without incurring additional costs.

Machine-Hours

A measure of the amount of time machines are used in the production process, often related to the allocation of manufacturing overhead.