Question 8 Which of the following is true about transfer prices? For a negotiated transfer price, the minimum price (i.e. the floor) likely increases as the selling department's excess capacity decreases. Transfer prices mainly help ensure investment center managers choose capital projects that are in line with the firm's interests. For a negotiated transfer price, the minimum price (i.e. the floor) likely increases as the buying department's market price increases (assuming limited capacity). For a negotiated transfer price, the minimum price (i.e. the floor) likely decreases as the selling department's market price increases (assuming limited capacity).