If external markets exist,then market-based transfer prices are the most appropriate.

Name: If external markets exist,then market-based transfer prices are the most appropriate.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Market-based transfer prices are appropriate when there are external markets, as they reflect the actual market conditions and allow for better performance evaluation of different divisions. When there are no external markets, other methods such as cost-based or negotiated transfer prices may be more appropriate.

If External Markets Exist,then Market-Based Transfer Prices Are the Most