Answer
No, I disagree with the statement. Cost and price information do play a vital role in negotiated transfer prices. Both parties use cost data to establish a starting point for negotiations, while external market prices can serve as benchmarks to ensure competitiveness. Profit margins and fairness are also determined using cost and price information.
Work Step by Step
No, I disagree with the statement. Cost and price information do play a vital role in negotiated transfer prices. Both parties use cost data to establish a starting point for negotiations, while external market prices can serve as benchmarks to ensure competitiveness. Profit margins and fairness are also determined using cost and price information.
