33. "Transfer pricing" refers to: a. the price charged when a company sells to its employees....

33. "Transfer pricing" refers to:

a.

the price charged when a company sells to its employees.

b.

the price charged when a company sells to its customers.

c.

the price charged when one division sells to another division.

d.

the price charged when a company sells to a stockholder.

34. The most important goal of transfer pricing should be to:

a.	maximize the goals of the buying division.
b.	maximize the goals of the selling division.
c.	maximize the goals of the employees working in those divisions.
d.	maximize the goals of the company as a whole.

Expert Solution

33. Answer : Option - C

The price charged When one division sells to another division.

Transfer price means within the business organisation, the prices are charged from one division to another division for providing the goods and services. This kind of pricing is used to reduce the high tax burden for large corporations.

34. Answer : Option - D

Maximize the Goals of the company as a whole.

Because, both the buying and selling divisions are related to the same firm or business organisation only. So, the firm must see the profitability of the both the divisions that intends to maximize the goals of the company as a whole.

ekkarill92 answered 2 years ago

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