The most common value used for transfer pricing is:
A) Total variable costs.
B) Total fixed and variable costs.
C) Market value less fixed costs.
D) Market value.

Question

Quizplus · Accepted Answer

The most common value used for transfer pricing is market value. This is because it reflects the true economic value of the goods or services being transferred between related parties. Additionally, market value is typically the easiest value to determine and is less likely to be challenged by tax authorities.

The Most Common Value Used for Transfer Pricing Is