When discussing transfer pricing, the ______________________ is based on the results of a hypothetical negotiation with an independent business partner.
A) market-based transfer price
B) independent transfer price
C) assumed transfer price
D) arm's-length transfer price
E) negotiated transfer price

Question

Quizplus · Accepted Answer

The arm's-length transfer price is based on the results of a hypothetical negotiation with an independent business partner, reflecting the price that would have been agreed upon by unrelated parties under similar circumstances.

When Discussing Transfer Pricing, the ______________________ Is Based on the Results