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:

Unmasked Input Data

Data that is processed or transmitted in its original form without any form of obfuscation or encryption.

Reserve Banking

A banking system in which banks are required to hold a certain percentage of their deposits as reserves, either in their own vaults or deposited at a central bank.

Money Supply

The total sum of all financial assets in an economy at any given moment, which includes cash, coins, and the balances in checking and savings accounts.

Deposits

Funds placed into an account at a banking institution for safekeeping.