Transfer pricing decisions may harm the company as a whole.

Question

Quizplus · Accepted Answer

Transfer pricing decisions can harm the company as a whole by creating conflicts of interest between different parts of the organization, distorting profits, and potentially resulting in tax liabilities or penalties. This can ultimately undermine the company's financial performance and long-term sustainability. Therefore, it is important for companies to carefully consider the goals, risks, and implications of their transfer pricing strategies to avoid these negative outcomes.

Transfer Pricing Decisions May Harm the Company as a Whole