Assuming a Company Uses a Cost-Based Pricing System for Transfer

question 98

Multiple Choice

Assuming a company uses a cost-based pricing system for transfer pricing, which of the following is not a possible definition of cost?

• A) Variable cost
• B) Full cost
• C) Actual cost
• D) Fixed cost

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Definitions:

Polyphyletic

Describes a taxonomic group that does not share an immediate common ancestor and therefore does not form a clade.

Clade

A single “branch” in the tree of life; each clade represents an organism and all of its descendants.

Opposable Toes

A characteristic of some primates where the big toe can be moved around to touch the other toes, allowing for more precise manipulation of objects.

Forward-facing Eyes

A trait predominantly found in predators (such as humans), which allows for improved depth perception and binocular vision.