The transfer price that would leave the buying division no worse off if an input is purchased from an internal division is(are) called:
A)The maximum transfer price
B)The minimum transfer price
C)The negotiated transfer price
D)Both a and c

Question

Quizplus · Accepted Answer

The maximum transfer price is the highest price the buying division is willing to pay without being worse off, as it represents the highest cost it can incur before it would be more economical to purchase the input externally.

The Transfer Price That Would Leave the Buying Division No