Question Mode

Multiple Select Question

Select all that apply

Which of the following statements are true?

Multiple select question.

Market$-$based transfer prices are always more beneficial to a company than negotiated transfer prices.

A reasonable transfer price cannot be higher than the market price or lower than the avoidable cost of production.

To avoid suboptimization, senior management should set a transfer price if negotiations between the managers involved fail.

Allowing the managers involved to agree to a negotiated price preserves the notion of fairness.