For Each of the Following Transfer Price Descriptions or Operating

question 35

Short Answer

For each of the following transfer price descriptions or operating situations, tell which of the general methods of transfer pricing it is most appropriate.
A)any method
B)negotiated
C)cost-based
D)market-based
-Budgeted costs

• A)any method
• B)negotiated
• C)cost-based
• D)market-based
• -Budgeted costs

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Definitions:

Psychological Reactance

The unpleasant emotional response people experience when someone is trying to restrict their freedom to engage in a desired behavior.

Sensory Overload

A condition where one or more of the body's senses experiences overstimulation from the environment.

Yielding

The act of giving in or surrendering to a force, argument, or influence.

Inoculation

A psychological technique used to make individuals resistant to attempts to change their attitudes or beliefs by exposing them to small doses of arguments against their position.