Which of the Following Describes a Transfer Pricing System Based

question 92

Multiple Choice

Which of the following describes a transfer pricing system based on either variable costs or full-absorption costs,and applies a normal markup to costs as a surrogate for market prices when intermediate market prices are not available?

• A)hybrid.
• B)dual.
• C)cost-plus.
• D)mark-to-market.

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Definitions:

Compounded annually

Interest calculation method where interest is added to the principal once a year, affecting the total interest earned or paid.

Deferred annuity

A financial instrument that defers payments to the investor until a predetermined time.

Ordinary annuity

A series of equal payments made at the end of consecutive periods over a specified length of time.

Deferred annuity

An insurance product that provides future payments to the holder, typically starting at retirement, in exchange for current premiums or a lump sum payment.