The Text Notes That There Are Various Objectives of Transfer

question 34

Essay

The text notes that there are various objectives of transfer pricing. This raises the possibility of using multiple transfer pricing alternatives. For example, an organization could use one transfer pricing alternative for domestic transfers and another alternative for transnational transfers.
Required:
1. Provide a reason why an organization might choose a particular transfer pricing alternative for domestic transfers and a different transfer pricing alternative for international transfers.
2. Provide a reason why an organization may not want to use two different transfer pricing systems, one for domestic transfers and another for international transfers.