A DISADVANTAGE of a Negotiated Transfer Price Is That

question 88

Multiple Choice

A DISADVANTAGE of a negotiated transfer price is that:

• A)each division manager must put forth effort to increase division operating income
• B)negotiated transfer price preserves divisional autonomy
• C)negotiations usually require much time and energy
• D)Both B and C are correct.

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Definitions:

Suppliers

Businesses or individuals that provide goods or services to another company as part of the supply chain.

Customers

Individuals or businesses that purchase goods or services from a company.

Mission Statement

A formal, succinct statement declaring the goals, purpose, and values of an organization or company.

Short-Term

Relating to or occurring within a brief period of time, typically less than a year.