Final answer:
The transfer pricing method that most benefits the seller is the market-price method, as it allows the seller to realize a profit margin similar to what would be achieved in the open market. Option C is correct.
Step-by-step explanation:
The transfer pricing method that generally provides the most benefit to the seller is the market-price method.
This method involves setting transfer prices based on the current market value of goods or services. When divisions within a company transact with each other, using the market price allows the selling division to realize a profit as if they were selling the goods or services externally. This means that the internal seller division benefits from the same profit margin they would achieve if they were transacting in an open market with an external party.
On the other hand, the cost-based method might not provide as much benefit because it typically involves transferring goods or services at a price that covers the cost of production but does not include a significant markup. The negotiation method may or may not provide benefits comparable to the market-price method, as it depends on the bargaining power and negotiation skills of the parties involved.