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For Each of the Following, Identify Whether It BEST Relates

Question 11

Matching

For each of the following, identify whether it BEST relates to:

Premises:

Responses:

Bargaining between selling and buying units

market-based

Budgeted costs

cost-based

145% of full costs

negotiated

Internal product transfers are required if goods are available internally

all types of transfer pricing

Manufacturing costs plus marketing costs plus distribution costs plus customer service costs

Prices listed in a trade journal

Selling price less normal sales commissions

Variable manufacturing cost plus a markup

Premises:

Bargaining between selling and buying units

Budgeted costs

145% of full costs

Internal product transfers are required if goods are available internally

Manufacturing costs plus marketing costs plus distribution costs plus customer service costs

Prices listed in a trade journal

Selling price less normal sales commissions

Variable manufacturing cost plus a markup

Responses:

market-based

cost-based

negotiated

all types of transfer pricing

Correct Answer:

Premises:

Responses:

Bargaining between selling and buying units

Budgeted costs

145% of full costs

Internal product transfers are required if goods are available internally

Manufacturing costs plus marketing costs plus distribution costs plus customer service costs

Prices listed in a trade journal

Selling price less normal sales commissions

Variable manufacturing cost plus a markup