Under what conditions are a market-based transfer price optimal? A. Interdependencies of subunits are minimal. B. The
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Question:
Under what conditions are a market-based transfer price optimal?
A. Interdependencies of subunits are minimal.
B. The only benefits to the company arise when the transactions occur internally.
C. The market for intermediate product market is perfectly competitive.
D. Interdependencies of subunits are critical.
E. There are no additional costs or benefits to the company as a whole from buying or selling in the external market instead of transacting internally.
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