All of the following are false about transfer pricing except:

the cost approach can base the transfer price on either the variable cost or full absorption cost. 

companies should always use the selling division's variable cost as the transfer price. 

using negotiated transfer pricing is always the best approach. using the cost approach is always the best approach. 

None of the answer choices is correct

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You are absolutely correct None of the answer choices are correct Heres why The cost approach can ba... View the full answer