What Is the General Rule for Determining Transfer Prices on Transferred

question 45

Multiple Choice

What is the general rule for determining transfer prices on transferred products between segments of a company? The transfer price equals ________ plus ________.

• A) fixed costs; opportunity costs
• B) outlay cost; sunk cost
• C) outlay cost; variable cost
• D) outlay cost; opportunity cost

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Definitions:

Patrilateral Parallel-cousin

A type of kinship relationship where children of a father's brother or a mother's sister are considered close relatives, often seen in cultures with strong patrilineal descent.

Parallel-cousin Marriage

A type of cousin marriage where individuals marry cousins from their parent's same sibling (e.g., two brothers' children or two sisters' children marrying each other).

Fraternal Polyandry

A form of marriage in which a woman is married to two or more men who are brothers, practiced in some cultures for economic and societal reasons.