Because tax rates are different in various states within the United States,companies have incentives to set transfer prices that will
A)increase revenues in low-tax states.
B)decrease costs in high-tax states.
C)decrease revenues in low-tax states.
D)None of the answers is correct.

Question

Quizplus · Accepted Answer

Companies have incentives to increase revenues in low-tax states to minimize their overall tax burden by shifting profits to jurisdictions with lower tax rates.

Because Tax Rates Are Different in Various States Within the United