International transfer pricing is less complex than setting transfer prices between divisions in the same country

Question

Quizplus · Accepted Answer

Setting transfer prices between divisions in the same country can be just as complex or even more complex than international transfer pricing as companies have to comply with domestic tax laws and regulations in addition to managing different operating and cost structures within the same country. Decentralized companies have the added complexity of managing multiple divisions with different objectives and goals.

International Transfer Pricing Is Less Complex Than Setting Transfer Prices