An advantage of a negotiated transfer price is the:
A) close relationship between the negotiated price and the market price
B) negotiated transfer price preserves divisional autonomy
C) negotiations usually do not require much time and energy
D) Both B and C are correct.
Correct Answer:
Verified
Q79: The Mill Flow Company has two divisions.
Q80: No matter how low the transfer price,
Q81: The transfer-pricing method that reduces the goal-congruence
Q82: Cost-based transfer pricing is a better method
Q84: A firm using a cost-based transfer price
Q85: When companies do NOT want to use
Q86: Dual pricing reduces the goal-congruence problem associated
Q87: The prices negotiated by two divisions of
Q88: A DISADVANTAGE of a negotiated transfer price
Q100: Briefly explain each of the three methods
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