When the Transfer Price Chosen by Management Charges Another Department

question 79

Multiple Choice

When the transfer price chosen by management charges another department the price that would be charged to outside customers, this type of transfer pricing is called:

• A) marginal cost transfer pricing.
• B) cost-based transfer pricing.
• C) market-based transfer pricing.
• D) negotiated transfer pricing.

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Definitions:

Several Seconds

A brief period of time, typically less than a minute, often used to describe the duration of brief events.

Minutes

Written records of the main points and decisions made during meetings or formal gatherings.

Seven-digit Phone Number

A standard format for telephone numbers that includes a sequence of seven digits, often used in the United States and other countries.

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The ability to keep a limited amount of data in a readily accessible and active condition for a brief duration.