Negotiated Transfer Pricing Is Not Always Used Because of Each

question 27

Multiple Choice

Negotiated transfer pricing is not always used because of each of 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:

Fundamental Attribution Error

The cognitive bias of attributing other people's actions to their character or disposition, while attributing one's own actions to situational factors.

Psychological Contract Bias

The tendency for misunderstandings or misinterpretations to occur regarding the unwritten and unspoken expectations between employees and employers.

Hypocrisy Attribution Dynamic

A psychological pattern where individuals judge others as hypocritical without recognizing similar behaviors within themselves.

Factitious Disorder

A mental disorder in which a person acts as if they have a physical or mental illness when they are not really sick.