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.

---

Definitions:

Charismatic Authority

Charismatic authority is a type of leadership where the leader's influence is based on their personal charm and the devotion they inspire in their followers, rather than traditional or legal power.

Higher Authority

An entity or individual possessing greater power, control, or influence over others, often used in the context of organizational decision-making or religious belief.

Uncommon People

Individuals who are rare or exceptional in their characteristics, behaviors, or achievements, standing out from the general population.

Political Organization

Structures and systems that govern the conduct and policies of a society, including government institutions, political parties, and advocacy groups.