Which of the Following Is a Legitimate Disadvantage of Negotiated

question 35

Multiple Choice

Which of the following is a legitimate disadvantage of negotiated transfer pricing?

• A)Negotiated based transfer pricing fails to provide adequate autonomy to divisional managers.
• B)Negotiated based transfer prices will always be higher than market price.
• C)Negotiated based transfer prices usually fail to allow the seller to cover variable costs.
• D)Negotiated prices may lead to some less than optimal decisions.

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