Which of the following is not a measure on which transfer prices can be based?
A)Market-based price
B)Cost-based price
C)Negotiated price
D)Cost of capital price

Question

Quizplus · Accepted Answer

The cost of capital price is not a measure on which transfer prices can be based as it refers to the cost of raising capital for a company and is not directly related to the production or sale of specific goods or services. The other options (market-based price, cost-based price, and negotiated price) are commonly used to determine transfer pricing.

Which of the Following Is Not a Measure on Which