- 6 Marks
MA – May 2017 – L2 – Q1d – Transfer pricing
Describe three methods of transfer pricing and discuss their limitations.
Question
Transfer pricing is the method used to sell a product from one subsidiary to another within a company. It impacts the purchasing behavior of the subsidiaries and may have income tax implications for the company as a whole.
Required:
Describe any THREE methods of transfer pricing and discuss their limitations.
(6 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Cost Management, Internal, Pricing methods, Tax implications, Transfer Pricing
- Level: Level 2
- Topic: Transfer Pricing
- Series: MAY 2017