The "Floor" in Transfer Pricing Is

question 129

Multiple Choice

The "floor" in transfer pricing is

• A)the transfer price that would leave the buying division no worse off if an input is purchased from an internal division.
• B)the transfer price that would leave the selling division no worse off if the good is sold to an internal division.
• C)the transfer price that would leave the buying division worse off if an input is purchased from an internal division.
• D)none of these.

---

Definitions:

Cohabiting Opposite-Sex Couple

A living arrangement in which an unmarried male and female partner live together in a long-term relationship that resembles a marriage.

Households

Social units consisting of one or more people living together in the same dwelling and sharing living arrangements such as meals.

Sensory Systems

The parts of the nervous system responsible for processing sensory information, allowing organisms to perceive and interact with their environment.

Function

The specific role or activity for which a thing is used or designed, or the natural purpose of an organism or body part.