Which of the following is not an appropriate use of transfer pricing?
A) Product costing.
B) Decision making.
C) Establishing standard costs.
D) Evaluating performance.

Question

Quizplus · Accepted Answer

Transfer pricing is not typically used for establishing standard costs, as standard costs are predetermined costs used for budgeting and variance analysis, while transfer pricing is used for setting prices for transactions between divisions within a company.

Which of the Following Is Not an Appropriate Use of Transfer