Which of the Following Is a Consistently Desirable Characteristic in a Transfer

question 105

Multiple Choice

Which of the following is a consistently desirable characteristic in a transfer pricing system?

• A)system is very complex to be the most fair to the buying and selling units
• B)effect on subunit performance measures is not easily determined
• C)system should reflect organizational goals
• D)transfer price remains constant for a period of at least two years

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Definitions:

Capital Account

It reflects the net change in assets and liabilities from transactions in foreign investments and loans, indicating a country's financial position with the rest of the world.

Financial Account

A component of a country’s balance of payments that records transactions of foreign investment and domestic investment abroad, reflecting changes in ownership of international assets.

Financial Account

A component of a country's balance of payments that records transactions involving financial assets and liabilities between residents and non-residents over a period.

Capital Account

A national account that shows the net change in asset ownership for a nation, including assets from financial and physical capital.