When sales take place between related entities of the same company, ___________ is often used.
A) local-currency price stability (LCPS)
B) pricing-to-market (PTM)
C) transfer pricing
D) countertrade pricing
E) demand mark-up pricing

Question

Quizplus · Accepted Answer

Transfer pricing is used to determine the price at which goods or services are transferred between different divisions or subsidiaries of the same company. It is used to allocate profits and expenses among the various entities, and is subject to tax regulations and laws.

When Sales Take Place Between Related Entities of the Same