In many cases, the amount of the transfer price does not affect the overall company profits.

Name: In many cases, the amount of the transfer price does not affect the overall company profits.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Transfer pricing is an internal accounting practice where divisions of a company transact with each other. The overall company profits remain unchanged as the transfer price is an internal allocation of costs and revenues.

In Many Cases, the Amount of the Transfer Price Does