What is an advantage of a negotiated transfer price?
A)negotiated transfer price preserves divisional autonomy
B)negotiations usually do not require much time and energy
C)close relationship between the negotiated price and the market price
D)Both B and C are correct.

Question

Quizplus · Accepted Answer

Negotiated transfer prices preserve divisional autonomy by allowing divisions to negotiate prices among themselves, which can lead to more optimal decision-making within each division.

What Is an Advantage of a Negotiated Transfer Price