Negotiation between managers is not appropriate in determining an appropriate transfer price.

Question

Quizplus · Accepted Answer

Negotiation between managers is appropriate in determining an appropriate transfer price as both parties can discuss and agree on a price that is fair and reflects the costs and benefits for each department. However, it is important for the negotiation to be based on objective criteria such as market prices or actual costs.

Negotiation Between Managers Is Not Appropriate in Determining an Appropriate