Which of the following is not true about cost-based transfer prices?
A)Prices are helpful to managers when market prices are unavailable.
B)Prices are helpful to managers when market prices are inappropriate.
C)Prices are helpful to managers when the product is specialized.
D)Prices are helpful to managers when the internal product is similar from the products available externally.
E)Prices are helpful to managers when the external product is different from the products available externally.

Question

Quizplus · Accepted Answer

The statement "Prices are helpful to managers when the external product is different from the products available externally" is incorrect as it does not make sense. The options should be "Prices are helpful to managers when the internal product is different from the products available externally."

Which of the Following Is Not True About Cost-Based Transfer