In the United States, more companies use cost-based transfer prices than market-based transfer prices.

Name: In the United States, more companies use cost-based transfer prices than market-based transfer prices.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cost-based transfer pricing is often preferred in the U.S. because it is simpler to implement and aligns with internal cost structures, whereas market-based pricing can be more complex and less applicable when external market prices are not readily available.

In the United States, More Companies Use Cost-Based Transfer Prices