When negotiating a transfer price,the highest price the buyer will be willing to pay is the ________,while the lowest price the seller will be willing to accept is the ________.
A)market price;full cost
B)full cost;variable cost
C)market price;variable cost
D)variable cost;market price

Question

Quizplus · Accepted Answer

The market price refers to the price at which a product or service is being bought or sold in the market. The buyer will not be willing to pay anything higher than the market price for the transfer, and the seller will not want to accept anything lower than their variable cost, which is the minimum cost required to produce or provide the product or service. Therefore, the correct answer is C) market price; variable cost.

When Negotiating a Transfer Price,the Highest Price the Buyer Will