When sales take place between related entities of the same company, _____is often used.
A)local-currency price stability (LCPS)
B)transfer pricing
C)countertrade pricing
D)demand mark-up pricing

Question

Quizplus · Accepted Answer

Transfer pricing is the method used for setting the prices of goods and services sold between controlled or related legal entities within an enterprise. This is common in multinational companies where transactions between different divisions or subsidiaries in different countries need to be valued for accounting and tax purposes.

When Sales Take Place Between Related Entities of the Same