The market price is the most appropriate transfer price to be charged by one department to another in the same organization for a service provided when:

The market price is the most appropriate transfer price to be charged by one department to another in the same organization for a service provided when:
A . There is an external market for that service.
B . The selling department operates at 50 percent of its capacity.
C . The purchasing department has more negotiating power than the selling department.
D . There is no external market for that service.

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Answer: A