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If the external market for an intermediate product is perfectly competitive, then the transfer price should be set equal to :?

 a. the market price of the final product. 

 b. the competitive market price of the intermediate product. 

 c. the marginal cost of the final product. 

 d. None of the above is correct. 

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/07/22
Yaqoub Alomar
by Yaqoub Alomar , Civil Engineer , Al-Zubeir municipality

 

I Agree with the majority 

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Elke Woofter
by Elke Woofter , Project Assistant , American Technical Associates

I also go with option B...........................

Salvatore Augello
by Salvatore Augello , owner , A.S. Trade & Consult

correct is B ___________________________________________

Sashikanta Mohapatra
by Sashikanta Mohapatra , Manager - Business Development/Sales Process Deployment , Vodafone Spacetel Limited

It's the2nd option....Option B.

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

B.is rigjtþtttttttttt. ......................

Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

 ********option (B)the competitive market price of the intermediate product.*******

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

 

My Answer Is Option " B " ...

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

  1. The correct answer was: b. the competitive market price of the intermediate product.

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