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Under Which Transfer Pricing Scheme Is the Transfer Price Set

Question 80

Multiple Choice
Under which transfer pricing scheme is the transfer price set equal to the selling division's actual cost of production or set equal to the cost of production if the selling division were operating at maximum efficiency?
A) exchange autonomy
B) mandated full cost
C) mandated market based
D) dual pricing

Under which transfer pricing scheme is the transfer price set equal to the selling division's actual cost of production or set equal to the cost of production if the selling division were operating at maximum efficiency?


A) exchange autonomy
B) mandated full cost
C) mandated market based
D) dual pricing

Correct Answer:

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