Responsibility Accounting & Transfer Pricing MCQs with Answers

Costs which can be eliminated in whole or in part if a particular business segment is discontinued are called:

Correct! Wrong!

The acceptance of a special order will improve overall net operating income so long as the revenue from the special order exceeds:

Correct! Wrong!

Which of the following is not an example of a responsibility center?

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Transfer pricing intends to arrive a the arm’s length price, for goods sold or services rendered by:

Correct! Wrong!

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The Asian Division of a multinational manufacturing organisation would likely be classified as a:

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If one of the segment of an enterprise claims tax holiday , the purpose of transfer pricing is to ensure that the profit such segment is not :

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The purpose of transfer pricing was to ensure that the expenses of a tax holiday segment are not ……………………. and transferred to non-tax holiday unit :

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Transfer Price means the price, which is charged between :

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Transfer pricing is, arriving at of the price for goods and services, which are transacted between:

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Which of the following is not a common goal of an organisation?

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In centralised organisations, primary decisions are made by ________.

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Strategic decisions occur ________.

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Organizational charts ________.

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Managers in decentralized organizations make decisions relating to all of the following except ________.

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A system that establishes financial accountability for operating segments within an organization is called ________.

Correct! Wrong!

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