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(a) A transfer price is the price at which goods or services are transferred 'om one department to another or om one member of a group to another. In a manufacturing context, intermediate goods are often transferred to another division within a group= where rrther work takes place before the final product is made and sold to the external market. These intermediate products need to be priced so that appropriate decision could he made about selling products either internally or externally. The most common method used for transfer pricing is the full costbased method. However, some managers do use the marginal cost approach in setting the transfer price for their department. Required: Evaluate THREE (3] main drawbacks of using a full costbased transfer pricing system and discuss FUUR (4] issues that may arise in using the marginal costbased transfer pricing system, both to the supplying division and receiving division. {14 marks]