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What Is an Advance Pricing Agreement

Question 42

Multiple Choice

What is an advance pricing agreement?


A) A transfer price that is negotiated between two divisions of a decentralized organization
B) A transfer pricing method accepted by the IRS before an intercompany transaction is completed
C) A contract between a parent company and a foreign subsidiary to complete a transaction at a specified future price
D) A foreign currency firm commitment with payment before delivery of the product

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