Which two methods are used most often when establishing a transfer price?
A) Negotiated transfer pricing and cost-based transfer pricing
B) Cost-based transfer pricing and market-based transfer pricing
C) Negotiated transfer pricing and market-based transfer pricing
D) Cost-based transfer pricing and standard-based pricing

Question

Quizplus · Accepted Answer

Cost-based transfer pricing and market-based transfer pricing are the two most commonly used methods for establishing transfer prices, as they rely on internal cost structures and external market conditions, respectively.

Which Two Methods Are Used Most Often When Establishing a Transfer