Market price is the only price a firm should use when transferring goods from one subunit to another subunit.

Name: Market price is the only price a firm should use when transferring goods from one subunit to another subunit.
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Question

Quizplus · Accepted Answer

Market price is not the only price a firm can use when transferring goods from one subunit to another subunit. Other methods such as cost-based transfer pricing or negotiated transfer pricing can also be used depending on the company's internal policies and objectives.

Market Price Is the Only Price a Firm Should Use