Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 22 - Management Control Systems, Transfer Pricing, and Multinational Considerations - Assignment Material - Questions - Page 865: 22-7

Answer

The three methods for determining transfer prices are market-based, cost-based, and hybrid pricing. Market-based uses external market prices, cost-based relies on production costs plus a markup, and hybrid combines elements of both approaches for flexibility.

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