Assuming a company uses a cost-based pricing system for transfer pricing,which of the following items would NOT be used?
A)variable-costing
B)full-costing plus profit
C)full-costing
D)fixed-costing

Question

Quizplus · Accepted Answer

Fixed-costing is not a method of cost-based pricing. The other options, variable-costing and full-costing (either with or without profit), are commonly used methods in cost-based transfer pricing.

Assuming a Company Uses a Cost-Based Pricing System for Transfer