What are the two general types of challenges to transfer pricing policies?
A) Beachfront and island philosophy
B) The supply and demand of adjustable rates
C) Economic disintegration and fragmentation
D) Performance measurement and taxation

Question

Quizplus · Accepted Answer

The two general types of challenges to transfer pricing policies are performance measurement and taxation. Performance measurement refers to the difficulty in determining whether the transfer price is appropriate for the goods or services transferred, while taxation refers to the potential for tax evasion or tax avoidance through transfer pricing. The other options, A, B, and C, do not accurately describe the types of challenges to transfer pricing policies.

What Are the Two General Types of Challenges to Transfer