The primary limitation of a full-cost based transfer pricing system is that: Multiple Choice Managers may find that the transfer price is difficult to compute. The supplying and purchasing divisions are more likely to make decisions that are inconsistent with the goals of the organization as a whole. There will be little incentive on the part of the supplying manager to supply goods and services efficiently. Such transfer prices are not currently allowed for federal income tax purposes. Managers may spend too much time negotiating the transfer price