When There Is an Outside Market for an Intermediate Product

question 72

Multiple Choice

When there is an outside market for an intermediate product which is perfectly competitive,the most equitable method of transfer pricing is

• A)market price.
• B)production cost pricing.
• C)variable cost pricing.
• D)cost plus markup pricing.

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Definitions:

Imagining

The process of forming mental images or concepts of what is not actually present to the senses, often used in creative thinking and problem-solving.

Product Innovation

The development and introduction of new or significantly improved goods or services that add value to customers.

Commercialisation

The process of bringing a new product or service to the market, turning an invention or idea into a viable business offering.

Feasibility Screening

The initial evaluation process to determine the viability of a project or idea, based on criteria such as cost, time, and potential for success.