Which of the following is a problem with the use of a negotiated transfer price?
A) The negotiations can be extremely time-consuming.
B) The final transfer price may be primarily due to an individual's superior negotiation skills.
C) It can lead to suboptimal decisions for the firm.
D) All of the given answers

Question

Quizplus · Accepted Answer

All of the given options are problems with the use of negotiated transfer prices. Negotiations can be time-consuming, leading to a waste of resources. The final transfer price may not reflect the true market value of the goods or services exchanged but may instead be the result of an individual's negotiation skills. Finally, the use of transfer prices based on negotiations can lead to suboptimal decisions for the firm overall.

Which of the Following Is a Problem with the Use