Which of the following is the most unbiased transfer price?

Question

Quizplus · Accepted Answer

Market-based price is the most unbiased transfer price as it is based on the prevailing market conditions and reflects the true price that would have been charged if the transfer had taken place between two independent companies. Cost-based price may not reflect the actual value of the product/service and negotiated price may be influenced by personal interests or other factors. Intercompany price may also be subject to manipulation or biases.

Which of the Following Is the Most Unbiased Transfer Price