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For Each of the Following Transfer Price Descriptions or Operating

Question 19

Essay

For each of the following transfer price descriptions or operating situations, tell which of the general methods of transfer pricing it is probably categorized as:
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 plus marketing plus distribution plus customer service costs
f. Prices listed in a trade journal
g. Selling price less normal sales commissions
h. Variable manufacturing cost plus a mark- up

Correct Answer:

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a. negotiated
b. cost- based
c...

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