Negotiated Transfer Pricing Is NOT Always Used Because the Following

question 92

Multiple Choice

Negotiated transfer pricing is NOT always used because the following reasons, EXCEPT that

• A)market price information is sometimes not easily obtainable.
• B)a lack of trust between the negotiating divisions may lead to a breakdown in the negotiations.
• C)negotiations often lead to different pricing strategies from division to division.
• D)opportunity cost is sometimes not determinable.

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Definitions:

Stethoscope

A medical instrument used for listening to sounds within the body, such as the heartbeat or breathing, essential for diagnoses.

Methodical

Characterized by a systematic, orderly approach to tasks or procedures, often leading to accurate and thorough outcomes.

Auscultating

The act of listening to the internal sounds of the body, typically using a stethoscope, for medical diagnosis.

Fingernails

Hard, flat structures made of keratin at the tips of fingers, serving protective and functional purposes.