What is "transfer pricing?"
A) The cost to convert from one country's GAAP to another country's GAAP
B) The value of sales made in a foreign country
C) The prices established to record an intercompany sale
D) The taxes paid on sales in a foreign country

Question

Quizplus · Accepted Answer

Transfer pricing refers to the prices established to record an intercompany sale between two affiliated companies in different countries. These prices can be manipulated to shift profits from one jurisdiction to another for tax avoidance purposes.

What Is "Transfer Pricing