Allowing buying divisions to make purchases from external suppliers will eliminate transfer pricing problems.

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Transfer pricing is a method of setting prices for goods and services transferred between different divisions of a company. It can be a complex and challenging process, and it can lead to problems if it is not done correctly. One of the main problems with transfer pricing is that it can create incentives for divisions to make decisions that are not in the best interests of the company as a whole. For example, a division that is buying goods from another division may be tempted to pay a higher price than the market price in order to increase its own profits. This can lead to the company overpaying for goods and services, and it can also reduce the efficiency of the company's operations.Allowing buying divisions to make purchases from external suppliers can eliminate transfer pricing problems because it removes the incentive for divisions to make decisions that are not in the best interests of the company as a whole. When divisions are able to buy goods and services from external suppliers, they are forced to compete with other companies in order to get the best price. This ensures that the company is getting the best possible price for the goods and services it needs, and it also reduces the risk of overpaying for goods and services.

Allowing Buying Divisions to Make Purchases from External Suppliers Will