Which of the following is the most unbiased transfer price?
A)Market-based price
B)Cost-based price
C)Negotiated price
D)Intercompany relay price

Question

Quizplus · Accepted Answer

The most unbiased transfer price is usually the market-based price because it is based on the prevailing price of the good or service in the actual marketplace, and is not influenced by the internal costs or profit goals of either the buying or selling division. Market-based prices are determined by analyzing the prices of comparable goods or services sold in the open market, and they ensure that transfer prices are fair and reflect the true value of the product or service being transferred.

Which of the Following Is the Most Unbiased Transfer Price