The time and effort spent negotiating a transfer price between a company's divisions add nothing directly to the profits of the company.

Question

Quizplus · Accepted Answer

Negotiating a transfer price is an internal transaction within the company and does not generate any additional revenue or profits for the company. It is primarily done to allocate costs and resources between divisions and ensure that each division is operating efficiently.

The Time and Effort Spent Negotiating a Transfer Price Between