A primary goal of transfer pricing is to:

Question

Quizplus · Accepted Answer

The primary goal of transfer pricing is to motivate decision makers to act in the best interests of the organization by ensuring that prices for internal transfers are set at a level that encourages optimal performance and profitability. Transfer pricing should not be used to benefit one unit of the organization at the expense of another, as this can lead to inefficiencies and conflicts. Instead, transfer prices should be set to promote cooperative behavior and the overall success of the organization.

A Primary Goal of Transfer Pricing Is To