Negotiated transfer prices are often employed when ________.
A) market prices are stable
B) market prices are volatile
C) market prices change by a regular percentage each year
D) goal congruence is not a major objective

Question

Quizplus · Accepted Answer

Negotiated transfer prices are often used in situations where market prices are volatile and may not accurately reflect the true value of the goods or services being transferred between different divisions or departments of the same company. By negotiating transfer prices, the different divisions can come to a mutually acceptable price that reflects the actual cost and value of the goods or services being transferred. This approach can help to promote goal congruence between the different divisions and encourage more efficient use of resources within the company.

Negotiated Transfer Prices Are Often Employed When ________