Please assist with the given problem. Provide explanations.
Question 1: An advantage of using budgeted costs for transfer pricing among divisions is that:
A. overall corporate profitability is usually higher.
B. it usually provides a basis for optimal decision making.
C. the divisions know the transfer price in advance.
D. it promotes subunit autonomy.
Question 2: Negotiated transfer prices are often employed when:
A. market prices are stable
B. market prices are volatile.
C. market prices change by a regular percentage each year.
D. goal congruence is not a major objective.
Slect the correct answer and why?