Which of the following is not a cost-based transfer price?
A) Standard unit-level cost
B) Actual cost
C) Standard unit-level cost plus a markup
D) Full cost (the product's unit-level cost plus an assigned portion of the higher-level costs)

Question

Quizplus · Accepted Answer

Actual cost is not a cost-based transfer price because cost-based transfer pricing methods typically involve standard costs or full costs with or without a markup, rather than just the actual costs incurred.

Which of the Following Is Not a Cost-Based Transfer Price