Transfer pricing is used most commonly in a
A) multidivisional structure.
B) product team structure.
C) functional structure.
D) matrix structure.
E) geographic structure.

Question

Quizplus · Accepted Answer

Transfer pricing is most commonly used in a multidivisional structure where different units or divisions of a company operate independently but trade with each other. The purpose of transfer pricing is to allocate profits and costs between these units to ensure that each division is operating efficiently and to minimize tax liabilities.

Transfer Pricing Is Used Most Commonly in a