I'm putting my money on C and D. The external market is a mess, and without any other options, cost-based is the way to go. Keeps the accountants happy, at least!
Haha, the transferring division wants to maximize profits? Good luck with that! But in all seriousness, C and D are the clear winners here. Can't argue with the logic.
I'm going with B and D. The transferring division wants to maximize profits, and without an external market, cost-based is the logical choice. Gotta keep everyone happy, am I right?
I think C and D are the correct answers. The external market is often imperfect, and there is frequently no external market for the transferred product, so cost-based approaches make the most sense in those situations.
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