Asked by Kevin Chaffins on Jul 11, 2024
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The negotiated price approach allows the managers of decentralized units to agree on the transfer price.
Negotiated Price
The final price agreed upon by both the buyer and the seller after a process of negotiation, which may involve discounts or modifications from the original price.
Decentralized Units
Operational segments of a larger organization that operate semi-independently, often with their own decision-making authority.
Transfer Price
The price charged one decentralized unit by another for the goods or services provided.
- Understand the concept and methods of transfer pricing within decentralized operations.
Verified Answer
Learning Objectives
- Understand the concept and methods of transfer pricing within decentralized operations.
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