When there is no intermediate market:
A) there is no optimal transfer price.
B) the selling division cannot transfer its goods internally.
C) the buying division cannot purchase its goods externally.
D) there is no reason for top management to intervene in transfer pricing disputes.

Question

Quizplus · Accepted Answer

When there is no intermediate market, the buying division cannot purchase its goods externally because there is no external market to provide an alternative source for the goods.

When There Is No Intermediate Market