Transfer pricing is most commonly used in a ________ structure.
A) geographic
B) product team
C) multidivisional
D) product division

Question

Quizplus · Accepted Answer

Transfer pricing is most commonly used in a multidivisional structure, where different units or divisions are responsible for different products or services. This allows for the transfer of goods or services between divisions to be priced appropriately, avoiding overcharging or undercharging, and ensuring that each division is fairly compensated for its contributions. Geographic or product team structures may also utilize transfer pricing, but it is typically not as common as in a multidivisional structure. A product division structure is similar to a multidivisional structure and may also utilize transfer pricing.

Transfer Pricing Is Most Commonly Used in a ________ Structure