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Negotiated Transfer Pricing Is Not Always Used Because of Each

Question 27

Multiple Choice

Negotiated transfer pricing is not always used because of each of the following reasons except that


A) market price information is sometimes not easily obtainable.
B) a lack of trust between the negotiating divisions may lead to a breakdown in the negotiations.
C) negotiations often lead to different pricing strategies from division to division.
D) opportunity cost is sometimes not determinable.

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