All of the following reasons are legitimate potential disadvantages of using a market-based transfer price except...

 

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All of the following reasons are legitimate potential disadvantages of using a market-based transfer price except Select one: A. substantially high selling expenses can lead companies to set an artificially high transfer price. B. use of market price leads division managers to act in a manner that is inconsistent with corporate goals. C. market price of intermediate goods and services can be difficult to determine. D. market price can be misleading if it is controlled by one or two highly influential companies. All of the following reasons are legitimate potential disadvantages of using a market-based transfer price except Select one: A. substantially high selling expenses can lead companies to set an artificially high transfer price. B. use of market price leads division managers to act in a manner that is inconsistent with corporate goals. C. market price of intermediate goods and services can be difficult to determine. D. market price can be misleading if it is controlled by one or two highly influential companies.

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ANSWER C Market price of intermediate goods and services can be difficult to determine In a typical ... View the full answer