Why Is Transfer Pricing Important

question 55

Multiple Choice

Why is transfer pricing important?

• A)It plays a key role in determining the ultimate profitability of the company as a whole.
• B)It plays a key role in determining the profitability of the division that sells the product.
• C)It plays a key role in determining the profitability of the division that buys the product.
• D)It plays a key role in determining the profitability of both the selling and buying divisions of the company.

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Definitions:

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