QUESTIONS Which one of the following transfer pricing alternatives is based on determining an appropriate markup, where the markup is based on gross profits of unrelated firmie similar products? Comparable-price method Olesale price method Net price method Costplan method Wholesale price method QUESTION 6 The difference between the historical cost and the netbook value (NOV of a plant asset is the Estimated replacement cost of the asset Residual value of the asset Accumulated depreciation expense on the asset Depreciation expense for the current period An estimate of the remaining useful life of the asset QUESTION 7 in the context of transfer pricing a pics Not recommended because of negative behavioral consequences Not recommended because it conflicts with current income tax requirements. The simultaneous use of two or more transfer pricing methods The use of two or more transfer pricing methods by the buyer only Never used when numerous conflicts exist between two units QUESTIONS Which of the following is true about return on investment (ROI? ols use can motivate suboptimal decision making on the part of subunit managers. It is defined as the difference between some measure of profitand an imputed charge for use of assets by the subunit whose performance is being evaluated it is generally used to evaluate the short-term financial performance of profit centers, When inflation slow, it approximates the amount of economic income that a subunit generater Oi generally cannot be used to compare the financial performance of one unit in an organization to other units in that organization