Development of a Transfer Price Involves

question 102

Multiple Choice

Development of a transfer price involves

• A) including only costs allocated from corporate levels when determining semi-finished product line costs.
• B) direct upper management intervention if different transfer prices are determined by the selling division and the buying division.
• C) applying a target profit rate to the unit cost for the semi-finished product.
• D) heavy reliance on industry averages.

---

Definitions:

Peremptory Challenge Stage

A phase during jury selection in a trial where attorneys can reject a certain number of potential jurors without stating a reason.

Special Verdict Stage

A phase in a trial where the jury is asked to make findings on specific factual questions before reaching a verdict.

Offer of Proof Stage

A phase in legal proceedings where a party indicates what evidence would be provided to prove a point or defense, often after an objection to said evidence.

Stare Decisis

A legal principle that mandates courts to follow the precedents set by previous decisions in similar cases.