What is the general benchmark for transfer prices? The transfer price equals ________ plus ________.
A)fixed costs; opportunity costs
B)outlay cost; sunk cost
C)outlay cost; variable cost
D)outlay cost; opportunity cost

Question

Quizplus · Accepted Answer

The general benchmark for transfer prices is the outlay cost plus the opportunity cost. The outlay cost is the expense incurred to produce the goods or services being transferred, while the opportunity cost is the profit or savings forgone by not selling the goods or services externally to a third party. Therefore, option D is the correct answer.

What Is the General Benchmark for Transfer Prices? the Transfer