The transfer price that would leave the selling division no worse off if the good is sold to an internal division is(are) called:
A)The maximum transfer price
B)The negotiated transfer price
C)The minimum transfer price
D)Both a and c

Question

Quizplus · Accepted Answer

The transfer price that would leave the selling division no worse off is the minimum transfer price. Option A, maximum transfer price, would result in the selling division benefiting at the expense of the buying division. Option B, negotiated transfer price, is not necessarily the price that would leave the selling division no worse off, as negotiations may result in a price that is not optimal for the selling division.

The Transfer Price That Would Leave the Selling Division No