The complexity of transfer pricing decisions enhances internal suppliers' ability to manipulate transfer prices to their advantage,passing cost increases downstream rather than looking for ways to reduce costs

Question

Quizplus · Accepted Answer

The complexity of transfer pricing decisions can provide opportunities for internal suppliers to manipulate transfer prices to their advantage, which may result in passing cost increases downstream instead of seeking ways to reduce costs. Therefore, the statement is true.

The Complexity of Transfer Pricing Decisions Enhances Internal Suppliers' Ability