A Negotiated Transfer Price

question 115

Multiple Choice

A negotiated transfer price

• A)is one that is bargained for between the managers of the buying and selling divisions.
• B)would not be based on a product market price that has been reduced through bargaining by division managers.
• C)could never be used in an agreement based on standard costs and a profit margin.
• D)is usually developed by lawyers following defined legal procedures.

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