4.Loiuse plc operates a shared service centre that provides IT, HR and Accounting services to all group companies. The s

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4.Loiuse plc operates a shared service centre thatprovides IT, HR and Accounting services to all group companies. Theshared service centre is treated as a cost centre for performanceappraisal purposes
Which of the following would be the most appropriatebasis for setting a transfer price for the services provided by theshared centre?
A Standard variable cost of the service plus a share ofbudgeted fixed costs
B Actual variable cost of the service plus a share ofactual fixed costs
C Standard full cost of the service plus amark-up
D. Actual full cost of the service plus a profitmark-up