A disadvantage of using negotiated prices is that the time and energy spent by managers haggling over transfer prices make the method too costly.

Name: A disadvantage of using negotiated prices is that the time and energy spent by managers haggling over transfer prices make the method too costly.
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Question

Quizplus · Accepted Answer

This statement is true. Negotiating transfer prices can be a time-consuming and resource-intensive process, which may outweigh the benefits of using negotiated prices as a transfer pricing method.

A Disadvantage of Using Negotiated Prices Is That the Time