The Resale Price Method of Transfer Pricing Requires a Company

question 15

Multiple Choice

The resale price method of transfer pricing requires a company to

• A)understand the value added functions of each related party.
• B)transfer at the full cost of the product plus a markup.
• C)determine the market-based price.
• D)calculate the arm's-length resale price.
• E)calculate the return on assets.

---

Definitions:

Breach Of Contract

The failure to perform as specified in a contract without a legitimate legal excuse.

Commercial Impracticability

A principle where performance under a contract is deemed unduly burdensome due to unforeseen events, relieving the obligated party.

Nonperformance

Failure to fulfill a contractual duty or obligation.

Late Charges

Additional fees charged to a borrower for failing to make payments on time.