In the ________ method,the eventual transfer price results from a bargaining process between the selling and buying subunits.
A)negotiated pricing
B)negotiated buying
C)negotiated purchasing
D)negotiated distribution
E)negotiated parallelism

Question

Quizplus · Accepted Answer

In the negotiated pricing method, the transfer price is decided through a bargaining process between the selling and buying subunits. This process involves negotiations and discussions to arrive at a mutually agreed price that satisfies the objectives of both parties. This method is often used when there are no external market prices available for the product or service being transferred within the organization.

In the ________ Method,the Eventual Transfer Price Results from a Bargaining