All of the Following Criteria May Be Used to Choose

question 154

Multiple Choice

All of the following criteria may be used to choose a transfer-pricing method EXCEPT

• A)promotion of quality products.
• B)promotion of a sustained high level of management effort.
• C)promotion of a high level of subunit autonomy.
• D)promotion of goal congruence.
• E)help top management evaluate subunit performance.

---

Definitions:

Purchasing Power

A currency's value determined by the volume of goods or services that can be bought with one monetary unit.

Federal Budget

The annual financial statement presenting the government's proposed revenues and spending for a fiscal year.

Tax Burden

The total amount of taxes that individuals, businesses, or other entities are required to pay, often expressed as a percentage of income or GDP.

Direct Taxes

Taxes that are paid directly to the government by the taxpayer, such as income tax and property tax.