Choose the appropriate transfer-price method ideal to managers when they expense variable production costs,variable and fixed production costs,and full product costs.
A)Market-based transfer prices.
B)Cost-based transfer prices.
C)Hybrid transfer prices.
D)Segment-based transfer prices.
E)Demographic-based transfer prices.

Question

Quizplus · Accepted Answer

Cost-based transfer prices are ideal for managers when they expense variable production costs, variable and fixed production costs, and full product costs because this method bases the transfer price on the costs incurred during the production process.

Choose the Appropriate Transfer-Price Method Ideal to Managers When They