The Most Likely Result of Using a Negotiated Transfer Price

question 6

Multiple Choice

The most likely result of using a negotiated transfer price is that:

• A) The resulting decision reflects purely economic considerations.
• B) More than the optimum number of units will be transferred between divisions.
• C) Fewer than the optimum number of units will be transferred between divisions.
• D) It takes away from the buying and selling units the ultimate responsibility for determining the transfer price.
• E) The end result might reflect the relative bargaining skills of the negotiating managers.

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Definitions:

Affective Component

The affective component refers to the emotional aspect of attitudes, encompassing feelings and emotions towards an object or concept.

Specific Feeling

A distinct emotional experience characterized by its particular quality, intensity, and context.

Type A Personality

A personality trait characterized by high levels of competitiveness, self-imposed stress, and a constant sense of urgency.

Multitasking

The action or capability of handling more than one task simultaneously or switching between tasks quickly.