B. In deciding a transfer pricing method, advise management on: i. negotiated transfer pricing ii. market-based transfer pricing
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- Discuss the advantages and disadvantages of a negotiated transfer pricing approach.A transfer pricing arrangement that uses the price that would be charged to an external customer is a______. A. market-based approach B. negotiated approach C. cost approach D. decentralized approachDiscuss the advantages and disadvantages of a market-based transfer pricing approach.
- Discuss the advantages and disadvantages of a cost-based transfer pricing approach.Discuss the concept of transfer pricing.Define transfer pricing and elaborate on FOUR (4) of its purposes. B. In deciding a transfer pricing method, advise management on:i. negotiated transfer pricingii. market-based transfer pricing C. Highlight ONE (1) advantage
- What is Transfer Pricing? What are the approaches in determining transfer prices? In your own idea, identify some best practices in transfer pricing.Explain the objectives of transfer pricing and describe the advantages anddisadvantages of various transfer pricing alternatives.Explain and critically assess the general idea behind transfer pricing. Would it be beneficial for allcompanies? Why?
- 1 (b) (i) Explain the criteria used for judging a transfer pricing system (ii) Explain the term “ negotiated versus imposed transfer prices “ (iii) Explain two methods of transfer pricing.Select Among the choices, this transfer prices basis is considered as the most inferior one: a. variable cost transfer pice b. full cost transfer price c. negotiatied transfer price d. external market transfer price e. dual transfer price