true or false questions

The cost-plus pricing approach establishes a cost base and adds a markup to this base to determine a target selling price. True False Using the negotiated transfer pricing approach, a minimum transfer price is established by the selling division. True False If a cost-based transfer price is used, the transfer price must be based on unit variable cost. True False In a competitive market, a company is forced to act as a price taker and must emphasize minimizing and controlling costs. True False The cost-plus pricing model gives consideration to whether demand will dictate that customers pay the target selling price. True False In most cases, a company sets the selling price instead of it being set by the competitive market. True False There are two approaches for determining a transfer price: cost-based and market-based. True False Divisions within vertically integrated companies normally sell goods only to other divisions within the same company. True False One problem with a cost-based transfer price is that it does not provide adequate incentive for the selling division to control costs. True False