Which of the following transfer pricing methods is least likely to favor the seller? Select one:...

Which of the following transfer pricing methods is least likely to favor the seller?

Select one:

A. Absorption cost plus 5 percent

B. Market prices

C. Allowing the buyer and seller to negotiate the price

D. Variable costs plus 5 percent

Expert Solution

answer: D. variable costs plus 5 percent

Variable cost plus 5 percent is likely to result in a selling price that is less than the seller’s full absorption cost

ekkarill92 answered 2 years ago

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