Determining the transfer price as the price at which the product or service transferred could be sold to outside buyers is known as thea. cost price approach b. negotiated price approach c. market price approach d. revenue price approach

Transfer pricing relates to the procedure used to establish the price of products or services traded between connected firms or corporations. Transfer pricing provides price improvements, improves productivity, and aids in streamlining the accounting process. It also allows for labor cost savings by simplifying procedures and methodologies. Transfer pricing assists in earning profits while also focusing on firm operations strategy.The correct option is c. Market price approach Answer explanation: The market pricing approach calculates the value that must be charged to the company's outside purchasers for their items or services depending on the expenses that they spend or market circumstances, potential costs, and so on.Reasons for other options: a. The cost strategy would be one in which the product is transferred at cost plus any profit margin.b. A negotiated pricing strategy is one in which the product is transferred at the value determined after the negotiation.d. There is no transfer pricing strategy that is connected to the revenue price approach.