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The most fundamental responsibility center affected by the use of market-based transfer prices is a(n)
Suggested Answer: D
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Transfer prices are often used by profit centers and investment centers. Profit centers are the more fundamental of these two centers because investment centers are responsible not only for revenues and costs but also for invested capital.
12 comments · newest first
CE
Celia
11 months ago
Production center doesn't fit here at all.
AN
Anabel
12 months ago
Wait, profit center? Are we sure about that?
KI
Kimberlie
12 months ago
I always thought it was an investment center.
RO
Rosendo
12 months ago
I think it's actually a cost center.
EA
Earnestine
1 year ago
Profit center is definitely the right answer!
AR
Arlette
1 year ago
Profit centers seem like the right answer because they deal with both costs and revenues, but I might be overthinking it.
SH
Shoshana
1 year ago
I feel like cost centers are less affected by transfer pricing since they don't deal with revenue directly, but I could be wrong.
VE
Vesta
1 year ago
I think market-based transfer prices mainly impact profit centers since they focus on revenue generation, but I'm not entirely sure.
MA
Maurine
1 year ago
I remember practicing a question like this, and I think it was about how production centers deal with costs rather than pricing.
PE
Pete
1 year ago
I'm pretty sure this is the Clark-Wilson model, which focuses on integrity and requires subjects to access objects through applications.
LE
Leontine
1 year ago
I like the idea of using focus groups to really understand the information needs of the different stakeholders. That way, I can tailor the communications strategy to their specific requirements.
PA
Patria
1 year ago
Hmm, I'm a bit unsure about this one. I'll need to review the Azure Security Center documentation to see where the email notification settings are configured.