All of the following are approaches for determining a transfer price EXCEPT the
A)cost-based approach.
B)market-based approach.
C)negotiated approach.
D)time-and-material approach.

Question

Quizplus · Accepted Answer

The time-and-material approach is not a method for determining a transfer price. The cost-based approach values the transferred goods based on their production cost, while the market-based approach values them based on market prices for similar goods. The negotiated approach involves both parties agreeing on a transfer price through negotiations.

All of the Following Are Approaches for Determining a Transfer