Governments Often Require the Following Type of Transfer Price for Income

question 40

Multiple Choice

Governments often require the following type of transfer price for income taxes:

• A) Variable cost
• B) Dual rate
• C) Market price
• D) Activity based cost

---

Definitions:

HST

Harmonized Sales Tax, a combined tax that includes both federal and provincial sales taxes, applied in some regions of Canada.

Pay-No-HST

A situation or offer where the Harmonized Sales Tax (HST) is not applied, making the purchase effectively tax-free.

Cumulative Investment

The total amount of money that has been invested over a period, including reinvested earnings.

Extra Funds

Additional money available beyond what is necessary for regular expenses, which can be saved or invested.