Which of the following is most likely to be the highest transfer price?
A) Variable cost
B) Dual-rate
C) Market price
D) Activity-based cost

Question

Quizplus · Accepted Answer

Market price is determined by the forces of supply and demand in the open market and will likely result in the highest transfer price. Variable cost, dual-rate, and activity-based cost transfer prices are internally determined and may not reflect market conditions.

Which of the Following Is Most Likely to Be the Highest