One advantage of using market prices as transfer prices between subsidiaries of a large company is that the people involved will usually see these prices as fair and objective.

Question

Quizplus · Accepted Answer

Market prices are determined by supply and demand forces and are generally seen as objective and unbiased. Using market prices as transfer prices can help avoid conflicts and disputes between subsidiaries as they are likely to accept these prices as fair.

One Advantage of Using Market Prices as Transfer Prices Between