2D. The marketbased ap mach produces a higher company contribution margin Than the cost-bas approach. 21. The negotiated transfer price approach should be used when no market price is available. 22. The cost-based approach 1ririll result in a largest contribution margin to the buying division. 23. Transfer prices are charges for goods stored within a subunit. 24. To the department selling goods and services. the transfer price is its cost. 25. To the department buying the goods and services. the transfer price is its revenue. 2E. The general rule in establishing transfer prices consistent with economic decision making is the differential cost plus opportunity cost if goods are trannsferred internally. 2?. The minimum transfer price from the seller's slandpoint should be opportunity cost for selling division. 28. Generally. the outside market price from the buyer's slandpoint should be the ceiling for internal transfer price. 29. If a firm operates at capacity. the transfer price should be the external market price. 3!}. The best transfer price is usually the reliable market price