This transfer prices basis is considered to be the most inferior one a. variable cost transfer pice b. full cost transfer price c. negotiatied transfer price d. external market transfer price e. dual transfer price

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing
Section: Chapter Questions
Problem 12DQ: If the minimum transfer price of the selling division is less than the maximum transfer price of the...
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This transfer prices basis is considered to be the most inferior one

a. variable cost transfer pice

b. full cost transfer price

c. negotiatied transfer price

d. external market transfer price

e. dual transfer price

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