The transfer pricing method that uses the price the company would charge external customers is the:
A) market price method.
B) cost-based method.
C) negotiation method.
D) balanced scorecard methoD.
The market price is the price that a company would charge to external customers; using that price for internal sales is the market price method of transfer pricing.

Question

Quizplus · Accepted Answer

The market price method uses the price the company would charge external customers, and is the appropriate transfer pricing method for internal sales.

The Transfer Pricing Method That Uses the Price the Company