Matching
Match the items below.
Premises:
Contracting with an external party to provide a good or service.
An approach to cost-plus pricing that uses two pricing rates.
Product’s selling price is determined by adding a markup to a cost base.
Transfer price is determined by agreement of division managers.
Companies that have no manufacturing facilities.
Percentage applied to a product’s cost.
Price that will provide the desired profit on a product.
Transfer price is based on existing prices of competing products.
Responses:
Cost-plus pricing
Market-based transfer price
Markup
Negotiated transfer price
Outsourcing
Target selling price
Time-and-material pricing
Virtual companies
Correct Answer:
Premises:
Responses:
Contracting with an external party to provide a good or service.
An approach to cost-plus pricing that uses two pricing rates.
Product’s selling price is determined by adding a markup to a cost base.
Transfer price is determined by agreement of division managers.
Companies that have no manufacturing facilities.
Percentage applied to a product’s cost.
Price that will provide the desired profit on a product.
Transfer price is based on existing prices of competing products.
Premises:
Contracting with an external party to provide a good or service.
An approach to cost-plus pricing that uses two pricing rates.
Product’s selling price is determined by adding a markup to a cost base.
Transfer price is determined by agreement of division managers.
Companies that have no manufacturing facilities.
Percentage applied to a product’s cost.
Price that will provide the desired profit on a product.
Transfer price is based on existing prices of competing products.
Responses:
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