The main purpose of transferring output from one process to the next at a price that includes profit (inter-process profit) is to:

Correct answer: B) Show whether each process can supply output at a price competitive with the market

Explanation

Transfer at market-based prices lets management judge whether each process is efficient compared with buying from outside, and makes each process a profit centre. It does not change total profit; unrealised profit included in closing stocks must be eliminated through a stock reserve.