Determining the transfer price as the price at which the product or service transferred could be sold to outside buyers is known as the

A) cost price approach
B) negotiated price approach
C) revenue price approach
D) market price approach

Question

Violet Vetter · Accepted Answer

Final Answer : D, Explanation :  The market price approach determines the transfer price based on the price at which the product or service could be sold to outside buyers, ensuring that it reflects the current market conditions and is fair to both the selling and buying divisions. The other options are not as effective or efficient in determining a fair transfer price.

Determining the transfer price as the price at which the product or service transferred could be sold to outside buyers is known as the

A) cost price approach
B) negotiated price approach
C) revenue price approach
D) market price approach

Definitions

Learning Objectives

Learning Objectives

Related questions

Determining the transfer price as the price at which the product or service transferred could be sold to outside buyers is known as theA) cost price approachB) negotiated price approachC) revenue price approachD) market price approach

Definitions

Learning Objectives

Learning Objectives

Related questions

Determining the transfer price as the price at which the product or service transferred could be sold to outside buyers is known as the

A) cost price approach
B) negotiated price approach
C) revenue price approach
D) market price approach