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Actual full cost method of determining transfer pricing involves dividing all fixed and variable expenses for a period into the number of units produced.
The full end-to-end value of producing goods or services is calculated using the full costing approach. All direct, fixed, and variable overhead costs are attributed to the final product when the whole costing approach is used. These varied costs go through inventory accounts with the product in full cost accounting up until the product is sold.
These will subsequently be recorded as expenses in costs of goods sold on the income statement. Full costing has the advantages of greater openness and compliance with reporting regulations. The potential for skewed profitability in income statement and the difficulty in estimating cost fluctuations at various production levels are drawbacks.
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Researchers often use computers in their experiments to keep from influencing the participants and to keep themselves <u>blind</u> regarding the conditions to which the participants have been assigned.
<h3><u>Why is research blinding crucial?</u></h3>
Blinding is crucial to prevent bias (such as observer bias and demand characteristics) and guarantee the internal validity of a study.
Participants may alter their behavior in ways that affect the outcome that researchers are aiming to measure if they are aware of whether they are in a control or treatment group. If those providing the treatment are aware of the participants' assigned groups, they may treat them differently, which could either directly or indirectly affect the outcome.
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Rationing is the controlled distributiom and consumption of scare resources. I checked it.
