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For Each of the Following, Identify Whether It BEST Relates

Question 84

Essay
For each of the following, identify whether it BEST relates to market-based, cost-based, negotiated, or all types of transfer pricing.
________a.Bargaining between selling and buying units
________b.Budgeted costs
________c.145% of full costs
________d.Internal product transfers are required if goods are available internally
________e.Manufacturing costs plus marketing costs plus distribution costs
plus customer service costs
________f.Prices listed in a trade journal
________g.Selling price less normal sales commissions
________h.Variable manufacturing cost plus a markup

For each of the following, identify whether it BEST relates to market-based, cost-based, negotiated, or all types of transfer pricing.
________a.Bargaining between selling and buying units
________b.Budgeted costs
________c.145% of full costs
________d.Internal product transfers are required if goods are available internally
________e.Manufacturing costs plus marketing costs plus distribution costs
plus customer service costs
________f.Prices listed in a trade journal
________g.Selling price less normal sales commissions
________h.Variable manufacturing cost plus a markup

Correct Answer:

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a.Negotiated
b.Cost-based
c.Co...

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