When companies are unable to choose a transfer-pricing method which meets their requirements, they may use
A) cost pricing.
B) dual pricing.
C) situational pricing.
D) market pricing.
E) pro-rating pricing.

Question

Quizplus · Accepted Answer

When companies are unable to choose a transfer-pricing method that meets their requirements, they may use dual pricing. Dual pricing involves using more than one transfer-pricing method for a single transaction, in order to balance the advantages and disadvantages of each method. This allows companies to achieve a more accurate transfer price and avoid potential conflicts with tax authorities.

When Companies Are Unable to Choose a Transfer-Pricing Method Which