What Is the General Rule for Setting a Transfer Price

question 27

Multiple Choice

What is the general rule for setting a transfer price?

• A) Additional costs of the supplying division + opportunity cost to the buying division
• B) Additional costs of the supplying division + opportunity cost to the supplying division
• C) Additional costs of the buying division + opportunity cost to the supplying division
• D) Always set at full-cost-plus price

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