An internal reconciliation account is not required for internal transfers based on
A)market value.
B)dual prices.
C)negotiated prices.
D)cost.

Question

Quizplus · Accepted Answer

An internal reconciliation account is used to reconcile differences between internal transfer prices and external market prices. If transfers are based on cost, there is no need for reconciliation as the price is already internal and does not need to be compared to external market prices. Therefore, option D is the correct answer.

An Internal Reconciliation Account Is Not Required for Internal Transfers