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jerico jerico
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9 years ago
Which of the following is a disadvantage of using negotiated transfer price?
A) It requires each division manager to put forth effort to increase division operating income.
B) Negotiated transfer prices take away the divisional autonomy as prices depend on bargaining strength.
C) Negotiations usually require much time and energy thereby consuming precious managerial time.
D) It may lead to divisional enmity because negotiation process may cause frictions among departments.
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
Authors:
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cyborgcyborg
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9 years ago
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jerico Author
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9 years ago
I can confidently say that it looks and sounds right lol Thank you Slight Smile Give this man a thumbs up.
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9 years ago
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