Assuming a company uses a cost-based pricing system for transfer pricing,which of the following items would NOT be used?
A) variable-costing only
B) full-costing plus profit only
C) full-costing only
D) fixed-costing only

Question

Quizplus · Accepted Answer

Fixed-costing is not a real pricing method and is not commonly used in transfer pricing. Therefore, it would not be included in a cost-based pricing system for transfer pricing. The other options (A, B, and C) are a part of cost-based pricing and may be used depending on the circumstances.

Assuming a Company Uses a Cost-Based Pricing System for Transfer