All of the Following Reasons Are Legitimate Potential Disadvantages of Using

Multiple Choice

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

A) Use of market price leads division managers to act in a manner that is inconsistent with corporate goals
B) Market price of intermediate goods and services can be difficult to determine
C) Substantially high selling expenses can lead companies to set an artificially high transfer price
D) Market price can be misleading if it is controlled by one or two highly influential companies