discuss the objectives of establishing a system of transfer pricing. What is such a system used for and what are its shortcomings when based on variable cost and full cost? Also discuss the implications of an external market; to what extent does the exter

discuss the objectives of establishing a system of transfer pricing. What is such a system used for and what are its shortcomings when based on variable cost and full cost? Also, discuss the implications of an external market; to what extent does the external market price improve over cost when creating transfer pricing?