For the Purpose of Transfer Pricing,any Part of the Organization

question 173

Multiple Choice

For the purpose of transfer pricing,any part of the organization to which revenue and controllable costs can be assigned,such as a department,is referred to as a:

• A)sales department.
• B)revenue center.
• C)controllable costs center.
• D)profit center.

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Definitions:

Levy

Imposition of a tax, fee, or fine by a government or regulatory authority.

Consumption

The act of using goods and services to satisfy needs or wants.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good.

Quantity Demanded

Quantity demanded is the amount of a good or service consumers are willing and able to purchase at a specific price level within a given time period.