A Benefit of Using a Market-Based Transfer Price Is That

question 9

Multiple Choice

A benefit of using a market-based transfer price is that the ________.

• A) profits of the transferring division are sacrificed for the overall good of the corporation
• B) profits of the division receiving the products are sacrificed for the overall good of the corporation
• C) economic viability and profitability of each division can be evaluated individually
• D) transferring division can be assured of recovering its full costs in all scenarios

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Definitions:

Negotiating Style

The approach or method an individual or party employs during negotiation to achieve their desired outcome.

Cultural Effects

The influence that culture has on the behavior and beliefs of individuals within that culture.

Win-Win Attitude

An approach to conflict resolution and negotiation where all parties work together to find a solution that satisfies everyone's interests.

Mediators

Neutral third parties who facilitate negotiations and conflict resolution between disputing parties aiming for agreement.