Hybrid (negotiated)transfer prices are often employed when:
A)market prices are stable
B)market prices change by a regular percentage each year
C)market prices are volatile
D)goal congruence is not a major objective

Question

Quizplus · Accepted Answer

Hybrid (negotiated) transfer prices are often employed when market prices are volatile, as it allows for negotiations between departments to arrive at a transfer price that is mutually beneficial and avoids the fluctuations and uncertainty of market prices.

Hybrid (Negotiated)transfer Prices Are Often Employed When