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Which of the following is a legitimate disadvantage of negotiated transfer pricing? C) Negotiated based transfer prices usually fail to allow the seller to cover

Which of the following is a legitimate disadvantage of negotiated transfer pricing?

C) Negotiated based transfer prices usually fail to allow the seller to cover variable costs.

B) Negotiated based transfer prices will always be higher than market price.

A) Negotiated based transfer pricing fails to provide adequate autonomy to division managers.

D) Negotiated prices may lead to some less than optimal decisions.

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