Full-Cost Transfer-Pricing Creates an Incentive For

question 7

Multiple Choice

Full-cost transfer-pricing creates an incentive for:

• A)distribution to be inefficient.
• B)distribution to be over-efficient.
• C)manufacturing to be over-efficient.
• D)manufacturing to be less efficient.

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Definitions:

Mediator

A neutral third party who assists in resolving disputes between two or more parties by facilitating dialogue and negotiation.

Acculturation

The process of cultural change and psychological change that results following meeting between cultures.

Assimilation

The process by which individuals or groups of differing cultural backgrounds are absorbed and integrated into the dominant culture.

Ethnography

A qualitative research method focused on studying cultures and communities through direct observation, participation, and other immersive techniques.