Development of a transfer price involves
A)legal agreements.
B)increases in insurance premiums.
C)redistribution.
D)negotiation.

Question

Quizplus · Accepted Answer

The development of a transfer price involves negotiation between the selling and buying divisions or units within a company. The legal agreements may be necessary to document the transfer price, but negotiation is the main step in determining the price. Increases in insurance premiums or redistribution are not directly involved in the development of a transfer price.

Development of a Transfer Price Involves