Cost-based transfer prices are helpful when:
A)a market exists for the product.
B)the product is unique.
C)a price is easy to obtain.
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Cost-based transfer prices are particularly useful when the product is unique and a market price is not readily available or applicable. This approach allows for the allocation of costs plus a markup to ensure profitability.

Cost-Based Transfer Prices Are Helpful When