An Advantage of a Negotiated Transfer Price Is the ________

question 77

Multiple Choice

An advantage of a negotiated transfer price is the ________.

• A) close relationship between the negotiated price and the market price
• B) negotiated transfer price preserves divisional autonomy
• C) negotiations usually do not require much time and energy
• D) simplicity of its computations and close approximation to market price

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Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price.

Supply and Demand

Fundamental economic concepts where supply represents how much the market can offer, and demand represents how much of a product or service is desired by buyers.

Supply and Demand

Economic principles stating that the price of a good is determined by its availability (supply) and consumers' desire to purchase it (demand).

Price of the Good

The amount of money required to purchase a specific product or service in the market.