Transfer pricing is defined as ________.
A) methods for transferring funds exclusively from foreign subsidiaries to parent corporations
B) compensation paid to owners of intellectual property
C) the means by which subsidiaries and affiliates charge each other as they exchange goods and services
D) the process through which a parent deposits a large sum in a foreign bank, which transfers it to a subsidiary as a loan

Question

Quizplus · Accepted Answer

Transfer pricing refers to the pricing of transactions between associated enterprises (such as subsidiaries and affiliates) within the same corporate group, particularly for the exchange of goods and services. This practice is crucial for financial and tax reporting purposes.

Transfer Pricing Is Defined as ________