What is the primary advantage of a negotiated transfer price?

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The primary advantage of a negotiated transfer price is that it preserves managerial autonomy to make decisions. This means that managers can negotiate a transfer price that is mutually beneficial for both parties and reflects the underlying costs and benefits of the transaction. This allows managers to better control costs and make decisions that are in the best interest of the company as a whole. Additionally, negotiated transfer prices are often based on relationships and trust between the parties, further enhancing the overall efficiency and effectiveness of the transfer process.

What Is the Primary Advantage of a Negotiated Transfer Price