Which of the Following Is Not True About the Negotiated

question 77

Multiple Choice

Which of the following is not true about the negotiated pricing method?

• A)Negotiated pricing is the most common hybrid method.
• B)Under this method,top management does not administer a specific split of the eventual profits across the transacting divisions.
• C)The eventual transfer price result from a bargaining process between the selling and buying subunits.
• D)Divisions are not free to negotiate a price that is mutually acceptable to both.
• E)Price and cost information are usually the starting point in the negotiation process.

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Definitions:

Logical

Pertaining to or characterized by clear, sound reasoning and thought processes.

Analytic

Pertaining to or proceeding by analysis (opposed to synthetic), involving the separation of a whole into its component parts to examine or determine their nature and relationship.

Systemic Solutions

Approaches to problem-solving that address the fundamental structure or underlying issues in a system, rather than only treating symptoms.

Racial Discrimination

Unfair treatment or prejudice towards individuals on the basis of their race, often resulting in systemic inequality and injustice.