What is "transfer pricing?"
A)The cost to convert from one country's GAAP to another country's GAAP
B)The value of sales made in a foreign country
C)The method of recording transactions between divisions within the same company
D)The taxes paid on sales in a foreign country

Question

Quizplus · Accepted Answer

Transfer pricing refers to the practice of setting prices for goods and services sold between different divisions of the same company. It is a way for multinational corporations to allocate profits and costs to different subsidiaries or entities in different countries in order to minimize taxes and increase profits.

What Is "Transfer Pricing