Subunits X and Y Determined the Price for Interdepartmental Services

question 23

Multiple Choice

Subunits X and Y determined the price for interdepartmental services during the last monthly meeting, using the selling prices charged to outside parties.This is an example of

• A)subunit transfer prices.
• B)negotiated transfer prices.
• C)market-based transfer prices.
• D)cost-based transfer prices.
• E)multinational transfer pricing.

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Definitions:

Organization

An entity comprising multiple people, such as an institution or an association, that has a particular purpose, such as a business or government department.

Organization levels

The different layers of authority and responsibility within an organization, typically ranging from senior executives to frontline employees.

Technical

Relating to or involving the practical application of scientific knowledge, especially in a specific professional area or activity.

Agency protocol

Agency protocol refers to the established guidelines and standard operating procedures that members of an organization or agency are expected to follow in their activities or operations.