Answer: c. the market price charged to outside customers
Explanation:
When a division is able to sell its products to customers outside the company for a certain price but instead has to transfer these to another division in the company, the minimum transfer price will have to be the selling price to the customers outside so that the division would not make losses.
The division that this good is transferred to will then reflect the cost of acquiring the goods as that selling price. This cost will be accounted for when the new division wants to sell their own goods that way this cost will be recuperated on a company level.
