The Biggest Problem with Cost-Based Transfer Prices Is

question 66

Multiple Choice

The biggest problem with cost-based transfer prices is:

• A) The fact that their use may result in sub-optimal decisions from the standpoint of the organization as a whole.
• B) Too much negotiation is involved in determining the transfer price.
• C) Data unavailability.
• D) They are difficult to put into place.
• E) They may lead to goal congruence within the firm.