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(1) Direct labor constitutes a significant part of total product cost. (2) A high correlation exists between direct labor and changes in the amount of overhead costs. Question 10 An activity that has a direct cause-effect relationship with the resources consumed is a(n) ------------------------------------------------------------------------------ ACC 560 Week 5 DQ Transfer Pricing For more course tutorials visit www.uophelp.com "Transfer Pricing" Please respond to the following: · Read the article titled, “What Manufacturers Need to Know about Transfer Pricing”. Next, assess the major potential problems that a multinational firm could encounter when using negotiated transfer pricing instead of market- basedtransfer pricing. Provide one (1) recommendation to the firm on how to avoid these problems. · Evaluate the validity of the accounting ethics of creating, initiating, or adjusting transactions to repatriate excess cash for multinational firms in transfer pricing ------------------------------------------------------------------------------