Transfer pricing involves all of the following except:
A) Raising or lowering of the prices of goods shipped among subsidiaries of an international corporation
B) Pricing of subsidiary products to affect the competitiveness or tax liabilities in other subsidiary markets
C) Raising or lowering of export prices to third-party (unaffiliated) customers
D) All are transfer pricing characteristics

Question

Quizplus · Accepted Answer

Transfer pricing specifically refers to the pricing of goods, services, and intangibles between related parties, such as subsidiaries of the same corporation. It does not typically involve the pricing of transactions to third-party (unaffiliated) customers, which is governed by market conditions rather than inter-company policies or strategies.

Transfer Pricing Involves All of the Following Except