The three common approaches to setting transfer prices include: the _____ price approach, where the transfer price is the price at which the product or service transferred could be sold to outside buyers; the _____ price approach allows the managers to agree among themselves on a transfer price; and the _____ price approach, where cost is used to set transfer prices. cost; market; negotiated market; cost; negotiated market; negotiated; cost negotiated; market; cost none of the above

Which is the best description of a dual transfer price?   A)  The receiving division is charged the market value of the item transferred while the supplying division is credited with the standard variable cost B)  The receiving division is credited the market value of the item transferred while the supplying division is charged with the standard variable cost C)  The receiving division is charged the standard variable cost transferred while the supplying division is credited with the market value of the item D)  The receiving division is credited the standard variable cost transferred while the supplying division is charged with the market value of the item

What are the three methods for determining transfer prices?