Which of the following is true of hybrid transfer prices?
A) The cost used in hybrid transfer prices is always the actual cost.
B) The cost used in hybrid transfer prices is always the budgeted cost.
C) They take into account both cost and market information.
D) They are less popular in manufacturing industry.

Question

Quizplus · Accepted Answer

Hybrid transfer prices incorporate both cost and market information, allowing for a more accurate reflection of the true value of the goods or services being transferred between departments or divisions. The cost used in hybrid transfer prices can be either actual or budgeted, depending on the situation. Hybrid transfer prices are used in both manufacturing and service industries.

Which of the Following Is True of Hybrid Transfer Prices