Transfer pricing" refers to: a. the price charged when a company sells to its employees. b....

Transfer pricing" refers to:

a.

the price charged when a company sells to its employees.

b.

the price charged when a company sells to its customers.

c.

the price charged when one division sells to another division.

d.

the price charged when a company sells to a stockholder.

34. 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

Transfer pricing refers to value attached to transfer of goods or services between related parties.Transfer price is the price at which related parties transact with each other, such as during the trade of supplies or labor between departments. Transfer prices are used when individual entities of a larger multi-entity firm are treated and measured as separately run entities. It is common for multi-entity corporations to be consolidated on a financial reporting basis; however, they may report each entity separately for tax purposes.

ekkarill92 answered 2 years ago

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