Prices of goods transferred from a company's operations or sales units in one country to its units elsewhere may be adjusted to enhance the ultimate profit of the company as a whole.This is called intracompany pricing.

Question

Quizplus · Accepted Answer

Intracompany pricing refers to the practice of adjusting prices of goods transferred between different units of the same company in different countries, with the purpose of maximizing the overall profits of the company. This is a common practice in multinational corporations, but it can also raise concerns about tax avoidance and transfer pricing manipulation.

Prices of Goods Transferred from a Company's Operations or Sales