Management Accounting & Control

Market-based transfer price means the price used is the fair market price at the time of transfer.
Cost-based transfer price means the price used is based on the cost of plus/minus a certain percentage on cost. e.g. if the cost is $100 and the add-on % is 10, then the transfer price is $110.
Negotiated transfer price means the price as negotiated and mutually agreed between the 2 parties. The price may be higher or lower than the Market-based price.