The market price is always the best transfer pricing policy.

Question

Quizplus · Accepted Answer

The market price may not always be the best transfer pricing policy as it may not reflect the actual cost of production or the value of the goods or services being transferred. Other factors such as tax implications, potential legal issues, and competitive pricing strategies also need to be considered. Therefore, companies need to weigh various factors and adopt a transfer pricing policy that aligns with their business objectives while complying with tax laws and other regulations.

The Market Price Is Always the Best Transfer Pricing Policy