Cost Accounting 101 Practice Test: Management Control Systems, Transfer Pricing, and Multinational Operations — Flashcards

A management control system (MCS) is a framework that helps organizations compare their actual outcomes to their goals and objectives. MCSs can be formal or informal, and they gather and use information to evaluate the performance of different organizational resources. MCSs are used by businesses to understand how successfully they achieve goals related to productivity, profitability, or efficiency. 

Transfer pricing is an accounting and taxation practice that allows for pricing transactions internally within businesses and between subsidiaries that operate under common control or ownership. Transfer pricing refers to the prices of goods and services that are exchanged between companies under common control. 
Multinational operations are activities undertaken within collective security and collective defense framework, in accordance with the international law and internationally confirmed agreements.