Which one of the following is not an acceptable base for determining the transfer price?

Name: Which one of the following is not an acceptable base for determining the transfer price?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Fixed cost is not an acceptable base for determining the transfer price as it is a sunk cost that has already been incurred and is not directly relevant to the pricing decision. The other options, market prices, variable costs, and full cost plus profit, are all acceptable bases for determining the transfer price.

Which One of the Following Is Not an Acceptable Base