The transfer price approach that uses a variety of cost concepts is the
A) negotiated price approach
B) standard cost approach
C) cost price approach
D) market price approach

Question

Quizplus · Accepted Answer

The cost price approach uses a variety of cost concepts to determine the transfer price, including actual cost, standard cost, and variable cost, among others. This approach focuses on the cost incurred to produce the goods or services being transferred within the company.

The Transfer Price Approach That Uses a Variety of Cost