The Price at Which One Operating Segment of a Business

question 8

Multiple Choice

The price at which one operating segment of a business sells goods to another operating segment of the same business is the:

• A)segment price.
• B)trading price.
• C)transfer price.
• D)inter-segment price.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Positive Economic Statement

A factual claim about the world that can be tested and validated, referring to what is, rather than what ought to be.

Normative

Normative relates to an ideal standard or model, often reflecting opinions about what is desirable or how things should be, especially in ethics and economics.

Gasoline

A petroleum-derived liquid mixture consisting mainly of hydrocarbons, used primarily as fuel in internal combustion engines.