Which of the Following Statements About Cost-Based Transfer Prices Is/are

Multiple Choice

Which of the following statements about cost-based transfer prices is/are true?
i. A transfer price set at standard variable cost plus a mark-up provides an incentive for the supplying business to make the transfer.
ii. Absorption cost-based transfer prices are good for the company as a whole because all costs are considered.
iii. Transfer prices should be based on standard costs rather than actual costs since the cost of inefficiency should not be passed on.

A) i and ii
B) ii and iii
C) i and iii
D) All of the given answers