For each of the following transfer price descriptions or operating situations, tell which of the general methods of transfer pricing it is most appropriate.
-Selling price less normal sales commissions

Question

Quizplus · Accepted Answer

Market-based transfer pricing uses the current market price as the basis for the transfer price. "Selling price less normal sales commissions" implies using the external market price (selling price) as a reference, adjusting it for costs not incurred in the internal transaction (sales commissions), which aligns with market-based transfer pricing principles.

For Each of the Following Transfer Price Descriptions or Operating