A Market-Based Transfer Price Is Based on the ________ When

question 84

Multiple Choice

A market-based transfer price is based on the ________ when determining the transfer price.

• A) variable costs
• B) sales price of goods
• C) cost of the goods
• D) contribution margin

---

Definitions:

Total Excess

The amount by which returns on an investment exceed the benchmark or risk-free return over a specified period.

Bogey Portfolio

An investment portfolio that serves as a benchmark against which other portfolios' performances are measured.

Geometric Average

A method of calculating the average rate of return of a set of values multiplicatively linked together, commonly used to determine the performance of investments over time.

Compounding Principle

The process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.