Which of the Following Best Describes a Transfer Price

question 127

Multiple Choice

Which of the following best describes a transfer price?

• A) It is the price charged by an organization when it transfer goods to another organization in lieu of services provided by it.
• B) It is the price that is to be used while calculating revenue from sales to customers for tax purposes.
• C) It is the price that is charged by a department of an organization when it sells its goods to its competitors.
• D) It is the price one subunit charges for a product or service supplied to another subunit of the same organization.

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Definitions:

Tibia

The inner and typically larger of the two bones between the knee and the ankle in vertebrates, parallel with the fibula.

Friction

The resistance that one surface or object encounters when moving over another.

Scales

Small, rigid plates that grow out of an animal's skin to provide protection. In fish and reptiles, scales perform this protective function.

Adaptation

The process by which organisms adjust to changes in their environment in order to survive and reproduce.