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What is Transfer Pricing Methods and Policies about?

This document discusses theories and methods related to transfer pricing. Some key points: - The objective of transfer pricing should be goal congruence between divisions and the firm. - Transfer pricing aims to motivate managers and ensure their decisions are consistent with firm goals. - Common transfer pricing methods include cost-based methods (e.g. variable or full costs) and market-based methods. - An optimal transfer pricing system satisfies objectives like accurate performance evaluation and g

Author

Karlovy Dalin

Language

EN