A negotiated transfer price will be between the negotiation floor and the negotiation ceiling.

Question

Quizplus · Accepted Answer

A negotiated transfer price is the price determined through a negotiation between the buyer and the seller. The negotiation will usually involve a discussion of the minimum price that the seller is willing to accept (the negotiation floor) and the maximum price that the buyer is willing to pay (the negotiation ceiling). Therefore, the negotiated transfer price will be somewhere between these two points.

A Negotiated Transfer Price Will Be Between the Negotiation Floor