question 16

one reason companies use full-cost transfer pricing is that it provides relevant costs for:

1-long-run decisions and for short run decisions

2-short-run decisions but not for long run decisions

3-long-run decisions even thought poor short run decisions may result

4-long - run decisions and for employee staffing decisions

5- short run decisions at the expense of the company

question 20

subunits x and y determined the price for interdepartmental services during the last monthly meeting using the selling prices charged to outside parties this is an example of

1- negotiated transfer price

2-market based transfer prices

3-cost based transfer prices

4- multinational transfer prices

5- subunit transfer prices

question 2

which of the following is false concerning profit centres and cost centres ?

1-a profit centres can exist within a centralized organization

2- a cost centres can exist within a centralized organization

3-a profit centres can exist within a decentralized organization

4-a cost centres can exist within a decentralized organization

5-if a profit centre exists within a centralized organization there cannot be any cost centres in the organization

question 5

which of the following is an advantage of an advance transfer price arrangement (APA)

1- APA save company from the cost of keeping related party transfer records

2-the canadian government provides APA free of charged to promote canadian exports

3-they are always cost effective

4- an APA can reduce or eliminate the opportunity cost associated with a canada revenue agency transfer price audit

5-an APA prevents companies from having to endure transfer price audits