The primary goal of transfer pricing is to:

Question

Quizplus · Accepted Answer

The primary goal of transfer pricing is not to obtain a high transfer price for either the supplying or receiving unit, but rather to motivate the decision maker to act in the organization's best interests. This involves setting a transfer price that aligns with the overall goals and objectives of the company, rather than promoting the interests of a specific unit or department. The goal is to encourage all units to work together in a collaborative and cooperative manner in order to achieve the organization's overall objectives. The transfer pricing should, therefore, be set based on the overall strategy and priorities of the company.

The Primary Goal of Transfer Pricing Is To