Which of These Is a Transfer Pricing Methodology That Preserves

question 85

Multiple Choice

Which of these is a transfer pricing methodology that preserves the autonomy of the division managers?

• A)cost-plus.
• B)actual costs.
• C)negotiated.
• D)predetermined.

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Definitions:

Contribution Margin

The amount by which product or service sales exceed variable costs, contributing to covering fixed costs and profit generation.

Planning Gap

The difference between future desired performance and projected actual performance, identified during strategic planning processes.

Sales Revenue Data

Information regarding the income generated from the sale of goods or services before any expenses are subtracted.

Visionary Organization

An enterprise that is guided by a clear, inspirational long-term vision, aimed at achieving significant goals or making a profound impact.