Which of the following transfer-pricing methods preserves sub-unit autonomy?
A)market-based transfer pricing
B)cost-based transfer pricing
C)negotiated transfer pricing
D)Both A and C are correct.

Question

Quizplus · Accepted Answer

Negotiated transfer pricing preserves sub-unit autonomy because it allows the subunits to negotiate the price of the goods or services being transferred. This gives the subunits more control over their own operations and allows them to make decisions that are in the best interests of their own subunit.

Which of the Following Transfer-Pricing Methods Preserves Sub-Unit Autonomy