Refer to the Following Diagram

question 8

Multiple Choice

Refer to the following diagram.Which of the following answers does not provide a valid interpretation of the multiplicities for the association between the Inventory and the Product Category classes?

• A) Every inventory item is in at least one product category.
• B) Every product category includes at least one inventory item.
• C) Some product categories do not include inventory items.
• D) Every inventory item is in at most one product category.

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Definitions:

Transfer Pricing

The setting of prices for transactions between affiliated entities within the same multinational corporation, affecting taxation and financial reporting.

Factory Overhead

All indirect costs associated with manufacturing, such as utilities, rent, and maintenance, excluding direct materials and direct labor.

Cost-Reimbursement Contract

A type of contract where the purchaser agrees to pay the supplier for all actual costs incurred plus a fee or profit.

Selling Price

The amount of money consumers pay to purchase a product or service, set by sellers based on costs, market demand, and competition.