If full cost is used in transfer pricing, it is preferable to use

Practice Question 10 options:

a)actual full cost because the buyer is well-advised to deal with the real rather than anticipated costs

b)standard full cost because the seller does not wish to pass along the variations in cost

c)actual full costs because the seller is well-advised to deal with the real rather than anticipated costs

d)standard full cost because the buyer does not wish to be stuck with unknowns

e)none of the options are correct