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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Definitions:

Otoscope

A medical device used to look into the ears, allowing for the examination of the ear canal and tympanic membrane.

Gingival Margin

The edge of the gum tissue that surrounds the teeth, marking the boundary between the crown of the tooth and the beginning of the gum.

Ciliated Mucous Membrane

A type of mucous membrane that contains hair-like structures called cilia, which help to move mucus and trapped particles.

Nasal Mucosa

The moist, protective lining inside the nose that helps filter, warm, and moisturize the air we breathe, and is also involved in immune responses.