The most important goal of transfer pricing should be to: a. maximize the goals of the...

The most important goal of transfer pricing should be to:

a. maximize the goals of the buying division.

b. maximize the goals of the selling division.

c. maximize the goals of the employees working in those divisions.

d. maximize the goals of the company as a whole.

Expert Solution

Option D

To maximize the company goal as a whole

Transfer pricing is done allocate profit between parent organization and it's subsidiaries. This effects reduction in tax due to that profit of the organization is increases. Which is beneficial for company as a whole and not on any department wise.

ekkarill92 answered 2 years ago

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