Use item cost as transfer cost-why can't this be used for standard cost items?

For this setting, the field level help states:

To use the transfer price as a declared shipping value for reference only, check the Use Item Cost as Transfer Cost box.

For example, for insurance or international shipping.

Note: If you enable this preference, items that use Standard costing are not available to be transferred.

If the item cost can't be used as a transfer cost when the item cost is using standard costing, what value are the items receipted at in the destination location?

Does this mean you have to manually set the transfer price on an inventory transfer order to equal the item's standard cost?