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    Financial and Managerial Accounting Study Set 2
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    Exam 26: Pricing Decisions,incltarget Costing and Transfer Pricing
  5. Question
    The Weakness of a Negotiated Transfer Price Is That Cost
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The Weakness of a Negotiated Transfer Price Is That Cost

Question 126

Question 126

True/False

The weakness of a negotiated transfer price is that cost recovery is guaranteed to the selling division,which may lead to failure to detect inefficient operating conditions and excessive cost incurrence.

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