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:

Supply Curve

A visual depiction showing the link between a product or service's price and the amount of it a supplier is prepared and capable of offering for sale.

Number Of Sellers

Refers to the total count of individuals or entities offering a particular good or service in a market, influencing competition and market dynamics.

Demand For Baseballs

The total quantity of baseballs that consumers are willing and able to purchase at various prices during a given time period.

Substitutes

Goods or services that can be used in place of each other, fulfilling the same needs or desires.