This occurs in very large organizations where there is considerable internal dealing between different divisions of the company and across national boundaries.
A) Transfer pricing.
B) EVC pricing.
C) Relationship pricing.
D) Value-in-use pricing.

Question

Quizplus · Accepted Answer

Transfer pricing refers to the practice of determining the value of goods or services as they are transferred between different divisions or entities within a company. This is especially important for multinational corporations that have subsidiaries operating in different countries with different tax rates and regulations. Transfer pricing can be used to minimize tax liability and to allocate costs and profits between different divisions or entities.

This Occurs in Very Large Organizations Where There Is Considerable