Which of the Following Is an Incorrect Description of Transfer

Multiple Choice

Which of the following is an incorrect description of transfer pricing?

A) It measures the value of goods or services furnished by a profit center to other responsibility centers within a company.
B) If a market price exists, this price may be used as a transfer price.
C) It measures exchanges between a company and external customers.
D) If no market price exists, the transfer price may be based on cost.