What is not an adjustment to market price that might be made during internal transfer price negotiation?
A) Adjust for production cost savings that only occur on the internal transfers
B) Commissions might not have to be paid on internally transferred products
C) No external market exists for the transferred product
D) Both A and C are adjustments

Question

Quizplus · Accepted Answer

If no external market exists for the transferred product, there is no market price to adjust from, making it irrelevant in the context of adjusting market price during internal transfer price negotiation.

What Is Not an Adjustment to Market Price That Might