What Is a Disadvantage of a Negotiated Transfer Price

question 138

Multiple Choice

What is a disadvantage of a negotiated transfer price?

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

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Definitions:

Ladder Logic

A programming language used to represent control logic in easily understood symbols arranged in a structure resembling a ladder, widely used in industrial and mechanical applications.

Scan

The process by which a PLC (Programmable Logic Controller) systematically checks its input signals and updates its outputs.

Internal Relay Coil

An internal relay coil is a virtual or logical coil in programmable logic controllers (PLCs) or software applications, representing the state of an output or condition without requiring a physical relay.

I/O Rack

A physical or virtual component that houses input/output modules, facilitating the exchange of data between a control system and external devices.