Depending on the circumstances, an adequate transfer price could be based on:
A) Market prices.
B) Full cost.
C) Variable or marginal cost of providing the product or service.
D) Any of the above.

Question

Quizplus · Accepted Answer

An adequate transfer price can indeed be based on market prices, full cost, or variable/marginal cost, depending on the specific circumstances and objectives of the organization. Each of these methods has its own advantages and is suitable for different situations, making "Any of the above" the correct choice.

Depending on the Circumstances, an Adequate Transfer Price Could Be