Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. define define (a)negotiated transfer pricing metho

Define Define (a)Negotiated transfer pricing method (b)Marketing based transfer pricing method Effect of each method on the divisional performance

60.1K

Verified Solution

Question

Accounting

Define

Define

(a)Negotiated transfer pricing method

(b)Marketing based transfer pricing method

Effect of each method on the divisional performance

Answer & Explanation Solved by verified expert
3.9 Ratings (370 Votes)
Answer a Negotiated transfer pricing method Arranged Negotiated costs are commonly favored as a center arrangement between market costs and costbased costs Under arranged costs the supervisors included act much equivalent to the chiefs of free organizations Exchange methodologies might be like those utilized when exchanging with outside business sectors On the off chance that the two divisions are allowed to manage one another or in the outside market the arranged cost will probably be near the outer market cost In the event that the majority of a selling divisions yield can not be sold in the outer market that is a segment must be sold to the purchasing division the negotiated cost will probably be not exactly the market cost and the absolute edge will be shared by the divisions The conditions under which an arranged exchange cost will be fruitful include 1 Opportunity to Buy or Sell Outside This gives the fundamental order to the haggling procedure 2 Sharing of all Market Information Among the Negotiators This should empower the arranged cost to be near the open door cost of one or ideally the two divisions 3 Some Form of Outside Market for the Intermediate Product This keeps away from a reciprocal imposing business model circumstance in which the last cost could shift over too vast a range contingent upon the quality and ability of every moderator 4 Backing and Occasional Involvement of Top Management The gatherings must be encouraged to settle most question By themselves generally the advantages of decentralization will be lost Top administration must be accessible to intercede    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

DefineDefine(a)Negotiated transfer pricing method(b)Marketing based transfer pricing methodEffect of each method on the divisional performance

Other questions asked by students

Q

Find the area of the parallelogram that has adjacent sides u i 3j 3k and...

Calculus
Q

Total plasma volume is important in determining the required plasma component in blood replacement therapy for...

Basic Math
Q

A science teacher claims that the mean scores on a science assessment test for fourth grade...

Statistics
Q

(a) You took two 50-g ice cubes from your −15 C kitchen freezer and placed them...

Physics
Q

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly...

Accounting
Q

Tax Table Standard Deduction Taxable income Income Tax Rate 0 9 700 9 701 39...

Geometry
Q

Multiply in the indicated base 47 57 47 57

Calculus
Q

1-Given a geometric sequence whose first term is 15 and common ratio is - 2,find...

Calculus
Q

What is the area of the largest rectangular space you can enclose with 176 f...

Algebra
Q

Check my work The June 30, 2021, year-end trial balance for Askew company contained the...

Accounting
Q

Which type of recurring transaction will automatically record a transaction? Multiple Choice O O O...

Accounting
Q

848 Chapter 22 Master Budgets and Planning Exercise 22-16 Manufacturing: Direct materials, direct labor and...

Accounting