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If full cost is used in transfer pricing, it is preferable to use ...

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Accounting

If full cost is used in transfer pricing, it is preferable to use

Select one:

a. actual full cost because the buyer is well-advised to deal with the real rather than anticipated costs

b. actual full costs because the seller is well-advised to deal with the real rather than anticipated costs

c. standard full cost because the seller does not wish to pass along the variations in cost

d. none of the options are correct

e. standard full cost because the buyer does not wish to be stuck with unknowns

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