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. Transfer pricing is used to determine the price at which goods, services or intellectual property are transferred between different units within an organization. By setting transfer prices that encourage decision-makers to consider the whole organization rather than just their own unit, a company can ensure that it operates efficiently and effectively. The other options are incorrect as transfer pricing should not be used to evade income taxes or to obtain a high transfer price for the selling unit, and minimizing recordkeeping costs is a secondary goal.

A Primary Goal of Transfer Pricing Is To