Multiple Chioce Quiz on Transfer Pricing
Multiple choice questions
Try the multiple choice questions below to test your knowledge of Chapter 18. Once you have completed the test, click on 'Submit Answers for Grading' to get your results.
If your lecturer has requested that you send your results to them, please complete the Routing Information found at the bottom of your graded page and click on the 'E-Mail Results' button. Please do not forward your results unless your lecturer has specifically requested that you do so.
This activity contains 10 questions.
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Top of Form | | | | |
When a perfectly competitive market exists and the firm uses market-based transfer pricing, the firm can achieve all of the following except for: | | | | | subunit performance evaluation. | | management effort. | | goal congruence. | | price monopoly. | | | | | | |
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Bob is the manager of the Beta division. He is accountable for only the sales generated by the division. Beta is a(n): | | | | | cost centre. | | profit centre. | | investment centre. | | revenue centre. | | | | | | |
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A company that uses a separate transfer price for each division in a single transaction is employing: | | | | | dual pricing. | | market-based pricing. | | negotiated pricing. | | full cost pricing. | | | | | | |
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If the selling subunit is operating at full capacity and can sell everything produced either internally or externally, it will only be willing to use a transfer price set by: | | | | | cost plus a mark-up. | | the market. | | negotiation. | | variable costing. | | | | | | |
| | | | | Optoca has 2 divisions, A and B. A makes a component for tables which it can sell only to Division B. It has no other outlet for sales. Current information for the
Try the multiple choice questions below to test your knowledge of Chapter 18. Once you have completed the test, click on 'Submit Answers for Grading' to get your results.
If your lecturer has requested that you send your results to them, please complete the Routing Information found at the bottom of your graded page and click on the 'E-Mail Results' button. Please do not forward your results unless your lecturer has specifically requested that you do so.
This activity contains 10 questions.
-------------------------------------------------
Top of Form | | | | |
When a perfectly competitive market exists and the firm uses market-based transfer pricing, the firm can achieve all of the following except for: | | | | | subunit performance evaluation. | | management effort. | | goal congruence. | | price monopoly. | | | | | | |
| | | | |
Bob is the manager of the Beta division. He is accountable for only the sales generated by the division. Beta is a(n): | | | | | cost centre. | | profit centre. | | investment centre. | | revenue centre. | | | | | | |
| | | | |
A company that uses a separate transfer price for each division in a single transaction is employing: | | | | | dual pricing. | | market-based pricing. | | negotiated pricing. | | full cost pricing. | | | | | | |
| | | | |
If the selling subunit is operating at full capacity and can sell everything produced either internally or externally, it will only be willing to use a transfer price set by: | | | | | cost plus a mark-up. | | the market. | | negotiation. | | variable costing. | | | | | | |
| | | | | Optoca has 2 divisions, A and B. A makes a component for tables which it can sell only to Division B. It has no other outlet for sales. Current information for the