The U.S.IRS allows transfer prices to be set using the arms-length price.

Question

Quizplus · Accepted Answer

The arms-length price method is difficult to apply in practice because there are many factors that can affect the pricing of goods and services, such as differences in terms of sale, quantity, quality, location, and date of sale. Therefore, it is not appropriate to simply use an eBay price as a transfer price. A more thorough analysis is required to determine the appropriate transfer price.

The USIRS Allows Transfer Prices to Be Set Using the Arms-Length