________ Is an Approach for Establishing a Market-Based Transfer Price

question 69

Multiple Choice

________ is an approach for establishing a market-based transfer price.

• A)Full cost plus a normal profit markup
• B)External market price less selling and delivery costs
• C)External market price plus a profit markup
• D)Variable cost plus unavoidable fixed cost

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Definitions:

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus following a desired behavior increases the likelihood of that behavior being repeated.

Positive Reinforcement

The addition of a rewarding stimulus following a behavior, intended to increase the likelihood of that behavior reoccurring.

Behaviorism

A branch of psychology that focuses on (relatively) simple explanations for outward behavior and is unconcerned with the inner workings of the mind.

Social Learning Theory

Social learning theory proposes that new behaviors can be acquired by observing and imitating others, highlighting the importance of social influences on learning.