Which of the Following Transfer-Pricing Methods Preserves Sub-Unit Autonomy

question 33

Multiple Choice

Which of the following transfer-pricing methods preserves sub-unit autonomy?

• A)market-based transfer pricing
• B)cost-based transfer pricing
• C)negotiated transfer pricing
• D)Both A and C are correct.

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Definitions:

Splitting Commissions

The act of dividing sales commissions among multiple salespersons or brokers who were involved in facilitating a sale or transaction.

Ethical Behavior

Conduct based on recognized principles of right and wrong, guiding individuals to act in morally responsible ways, especially in professional settings.

Sales Force

A group of employees within a company responsible for selling the company's products or services.