The GAAP financial reporting rules for segments require that all companies use transfer prices based on market prices.

Name: The GAAP financial reporting rules for segments require that all companies use transfer prices based on market prices.
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Quizplus · Accepted Answer

GAAP does not mandate that companies use market-based transfer prices for segment reporting; companies can use other methods as long as they are consistently applied and disclosed.

The GAAP Financial Reporting Rules for Segments Require That All