Which of the following strategies listed is NOT used to determine a transfer price?
A)Market price
B)Cost
C)Negotiated price
D)Selling price

Question

Quizplus · Accepted Answer

The selling price is not used to determine a transfer price. Transfer price is the price at which goods or services are transferred from one division or department to another within the same company. The selling price is the price at which a product or service is sold to a customer outside of the company. The strategies used to determine transfer price include market price, cost, and negotiated price.

Which of the Following Strategies Listed Is NOT Used to Determine