For Each of the Following Transfer Price Descriptions or Operating

question 19

Essay

For each of the following transfer price descriptions or operating situations, tell which of the general methods of transfer pricing it is probably categorized as:
a. Bargaining between selling and buying units
b. Budgeted costs
c. 145% of full costs
d. Internal product transfers are required if goods are available internally
e. Manufacturing plus marketing plus distribution plus customer service costs
f. Prices listed in a trade journal
g. Selling price less normal sales commissions
h. Variable manufacturing cost plus a mark- up

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Definitions:

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and resulting in significant geopolitical changes and the establishment of the United Nations.

Major Historical Event

A significant occurrence or happening that has had a profound impact on societies or civilizations throughout history.

Cold War

The period of geopolitical tension between the Soviet Union and the United States and their respective allies after World War II, characterized by political and military rivalry rather than direct warfare.

Great Depression

A severe worldwide economic downturn that lasted throughout the 1930s, marked by high unemployment, deflation, and widespread poverty.