Transfer prices should represent the opportunity costs of the transferred item.
Material from the appendix to the chapter is marked with an asterisk (*).

Question

Quizplus · Accepted Answer

Transfer prices should represent the opportunity costs of the transferred item, which means the price should reflect the value that could have been obtained if the item had been sold on the open market or used in the next best alternative.

Transfer Prices Should Represent the Opportunity Costs of the Transferred