Use of the market-price method (when such prices exist) satisfies a key objective of transfer pricing, namely:
A) Objectivity.
B) Selectivity.
C) Usability.
D) Transportability.
E) Reliability.

Question

Quizplus · Accepted Answer

The market-price method is considered objective because it relies on actual market prices for identical or similar goods or services in comparable transactions between unrelated parties. Therefore, the use of market prices satisfies the key objective of transfer pricing to determine prices that would have been agreed upon between unrelated parties in comparable transactions.

Use of the Market-Price Method (When Such Prices Exist) Satisfies