Business
Business, 04.04.2020 10:50, kashusledbetter

Standard costs rather than actual costs should be used in transfer-pricing methods because:

A. financial accounting rules (GAAP) require the use of standard costs.

B. tax rules require the use of standard costs.

C. standard costs are more readily available than actual costs.

D. standard costs facilitate a professionally negotiated, amicable settlement between the buying and selling divisions.

E. inefficient producing divisions could pass on their inefficiencies to buying divisions in the transfer price.

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Standard costs rather than actual costs should be used in transfer-pricing methods because:

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