All of the Following Are Correct Statements About the Market-Based

Multiple Choice

All of the following are correct statements about the market-based approach except that it

A) assumes that the transfer price should be based on the most objective inputs possible.
B) provides a fairer allocation of the company's contribution margin to each division.
C) produces a higher company contribution margin than the cost-based approach.
D) ensures that each division manager is properly motivated and rewarded.