In Reference to Establishing "Transfer Prices" Between the Affiliates of an MNC,which

question 40

Multiple Choice

In reference to establishing "transfer prices" between the affiliates of an MNC,which of the following relates to the "resale" price approach?

• A)Comparable uncontrolled price between unrelated firms.
• B)The price at which the good is resold by the distribution affiliate is reduced by an amount to cover overhead costs and a reasonable profit.
• C)Assumes that the manufacturing cost is readily available.
• D)Is based on financial and economic models and econometric techniques.

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Definitions:

Medium Of Exchange

A device or mechanism designed to assist in the buying, selling, or exchanging of products among individuals or groups.

American Dollar

The official currency of the United States, also known as the USD or US Dollar.

Members

Individuals who are part of an organization, group, or body, contributing to and benefitting from its activities and objectives.

FDIC

Stands for the Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits in banks and thrift institutions for at least $250,000 per depositor, per insured bank.