In computing a transfer price,the maximum price should be no higher than the highest market price at which the buying segment can obtain the good or service externally.

Question

Quizplus · Accepted Answer

The maximum transfer price should be no higher than the lowest market price at which the buying segment can obtain the good or service externally, not the highest. This ensures the internal transfer price is competitive with external market options.

In Computing a Transfer Price,the Maximum Price Should Be No