A Benefit of Using a Market-Based Transfer Price Is That

Multiple Choice

A benefit of using a market-based transfer price is that the ________.

A) profits of the transferring division are sacrificed for the overall good of the corporation
B) profits of the division receiving the products are sacrificed for the overall good of the corporation
C) economic viability and profitability of each division can be evaluated individually
D) transferring division can be assured of recovering its full costs in all scenarios