Market based transfer prices are most appropriate for customized high-volume and high-cost services.

Question

Quizplus · Accepted Answer

Market based transfer prices are generally used for standardized products and services that can be bought and sold in a market. Customized high-volume and high-cost services usually involve unique products, expertise, and specialized resources that may not have a clear market price. In such cases, negotiated transfer prices or cost-based transfer prices are generally more appropriate.

Market Based Transfer Prices Are Most Appropriate for Customized High-Volume