Development of a Transfer Price Involves

question 26

Multiple Choice

Development of a transfer price involves

• A)the use of the highest external market price so that the transferring division is very profitable.
• B)determination of an appropriate profit markup.
• C)computation of the selling and delivery costs of the item being transferred.
• D)the use of a team of lawyers representing the outside interests of the company.

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Definitions:

Statistical/Policy Capturing

A method used to analyze the decision-making process by capturing the rules and models people use to make decisions.

Evaluation Method

A systematic procedure used to assess performance, effectiveness, or value of employees, projects, or programs.

Questionnaires

Structured sets of questions used for gathering information from respondents, commonly used in research and feedback collection.

Functional Job Analysis

A method of job analysis that describes a job in terms of the tasks performed and the competencies required to perform those tasks.