In a negotiated transfer price,

Question

Quizplus · Accepted Answer

All of the given options are true in a negotiated transfer price. Market prices may not be suitable as the goods or services being transferred may not have a readily available market price. Opportunity costs could be used to set boundaries as both the buyer and the seller have alternative options which could be considered while negotiating the transfer price. Buyers and sellers influence the transfer price set as they are the parties involved in the negotiation process. Therefore, option D is the correct choice.

In a Negotiated Transfer Price