Given a competitive outside market for identical intermediate goods,what is the BEST transfer price,assuming all relevant information is readily available?
A)standard production cost per unit.
B)market price of the intermediate goods.
C)actual full cost per unit plus a normal markup.
D)market price of the final goods less any opportunity costs.

Question

Quizplus · Accepted Answer

The best transfer price in a competitive outside market for identical intermediate goods is the market price of the intermediate goods. This ensures that the transfer price reflects the actual market value of the intermediate goods and prevents one division of the company from gaining an unfair advantage over another division. Additionally, using the market price as the transfer price promotes efficiency and sound decision-making within the company.]]

Given a Competitive Outside Market for Identical Intermediate Goods,what Is