Transferring Products Internally at a Market Price Leads to Optimal

Multiple Choice

Transferring products internally at a market price leads to optimal decisions when all of the following conditions are prevalent except ________.

A) the market for the transferred product (intermediate product) is perfectly competitive
B) there are no additional costs to the company from buying in the external market instead of transacting internally
C) the interdependence of subunits is minimal
D) there are additional benefits to the company by selling in the external markets instead of transferring internally