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The costs used in cost-based transfer prices are actual costs. are budgeted costs. can either be actual or budgeted costs. are lower than the market-based
The costs used in cost-based transfer prices are actual costs. are budgeted costs. can either be actual or budgeted costs. are lower than the market-based transfer prices. A benefit of using a market-based transfer price is the profits of the transferring division are sacrificed for the overall good of the corporation. profits of the division receiving the products are sacrificed for the overall good of the corporation. economic viability and profitability of each division can be evaluated individually. None of the above The range over which two divisions will negotiate a transfer price is between the supplying division's variable cost and the market price of the product. between the supplying division's variable cost and its full cost of the product. anywhere above the supplying division's full cost of the product. between the supplying division's full cost and 180% above its full cost
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