Negotiated transfer pricing is not always used because of each of the following reasons except that
a) negotiations often lead to different pricing strategies from division to division.
b) opportunity cost is sometimes not determinable.
c) market price information is sometimes not easily obtainable.
d) a lack of trust between the negotiating divisions may lead to a breakdown in the negotiations.
Answer: b) opportunity cost is sometimes not determinable.
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Indicate whether the statement is true or false.
Which of the following statements about surety bonds is (are) true?
I. The surety has a legal right to recover a loss payment it made on behalf of a defaulting principal. II. The obligee is the party who benefits from the bond if the principal fails to perform. A) I only B) II only C) both I and II D) neither I nor II