Transfer pricing involves a firm setting the prices at which it transfers products or technologies to affiliates in other countries.

Question

Quizplus · Accepted Answer

This statement is true. Transfer pricing involves setting the prices for transactions between affiliates in different countries within the same company. This can include prices for the transfer of products, services, and intellectual property. The purpose of transfer pricing is to ensure that the prices set are fair and reasonable, and do not result in tax evasion or other financial benefits to the company.

Transfer Pricing Involves a Firm Setting the Prices at Which