Do you agree with the following statement? Explain. Obviously the correct transfer price is the opportunity cost

Question:

Do you agree with the following statement? Explain.

Obviously the correct transfer price is the opportunity cost of the resource. Any firm that uses full cost (which includes an allocation of corporate overhead) is doing it wrong.

Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...