International transfer pricing is primarily used to evaluate performance.

Question

Quizplus · Accepted Answer

International transfer pricing is primarily used to set prices for goods and services between different entities of a multinational company located in different countries, in order to allocate costs and profits. It is not primarily used to evaluate performance, but may be used as a tool to evaluate the profitability of a specific business unit or division within the company.

International Transfer Pricing Is Primarily Used to Evaluate Performance