Which of the following statements about cost-based transfer prices isnottrue?

Select one:

a.Transfer prices should be based on actual costs as they reflect the costs incurred.

b.A transfer price set at standard variable cost plus a mark-up provides an incentive for the supplying business to make the transfer.

c.Absorption cost-based transfer prices are good for the company as a whole because all costs are considered.

d.Transfer prices should be based on standard costs rather than actual costs since the cost of inefficiency should not be passed on.