Which of the Following Transfer Prices, in Theory, Is the Most

question 27

Multiple Choice

Which of the following transfer prices, in theory, is the most sound because it provides the best measure of the opportunity cost of inter-divisional transfers?

• A)Variable cost-based transfer prices.
• B)Full cost-based transfer prices.
• C)Market-based transfer prices.
• D)Negotiated transfer prices.
• E)None of the above.

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