A market-based transfer price considers the ________ when determining the transfer price.
A) variable costs
B) sales price of goods
C) cost of the goods
D) contribution margin

Question

Quizplus · Accepted Answer

A market-based transfer price takes into account the sales price of goods, which reflects the price that the goods can be sold in the open market. This ensures that both the selling and buying divisions are being treated fairly and encourages both to make efficient and competitive decisions.

A Market-Based Transfer Price Considers the ________ When Determining the Transfer