alleryStart learning →The comparable profits method compares a tested party with whom?
AIts own parent only
BIts largest customer
CCustoms authorities
DSimilar companies
Answer & Solution
Correct answer: D. Similar companies
CPM compares profit levels of companies in similar industries with the tested party.
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Related questions
Group units in tax rates of 25% and 40%. Shifting Rs 10 lakh profit to the lower-tax unit Why can ROI figures be manipulated?A known weakness of ROI as a measure is that it is not what?A division earns Rs 36 lakh profit on Rs 240 lakh invested. Its ROI is what?The cost of capital is best described as what?RONA is 16%, required return 12% and net investment Rs 800 lakh. EVA?NOPAT of Rs 72 lakh on capital of Rs 400 lakh gives RONA of what?When is value created, according to the EVA idea?