If there is a competitive outside market for the transferred product,then the best transfer price is the
A)cost-based price.
B)negotiated price.
C)market price.
D)price set by central management.
E)none of these.

Question

Quizplus · Accepted Answer

The best transfer price in a competitive outside market would be the market price, which represents the price that the product would fetch in an open market without any intra-organizational considerations. This ensures that the selling division receives a fair price and the buying division pays a competitive price for the product, thereby promoting efficiency and profitability for the organization as a whole.

If There Is a Competitive Outside Market for the Transferred