Which Transfer-Pricing Method Is Useful for Determining Full Cost of Products

question 31

Multiple Choice

Which transfer-pricing method is useful for determining full cost of products and services?

• A)Cost-based.
• B)Negotiated.
• C)Market-based.
• D)Minimum-based.
• E)Maximum-based.

---

Definitions:

Customer Payments

The transactions where a customer pays the company for goods or services provided.

Asset Account

An account on a balance sheet representing resources owned by a company with future economic value.

Debited

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.

Write Checks

The process of creating checks from a business account to pay for company expenses.