Question: Question 3 A. Define transfer pricing and elaborate on FOUR (4) of its purposes. (14 marks) B. In deciding a transfer pricing method, advise management

Question 3 A. Define transfer pricing and elaborate on FOUR (4) of its purposes. (14 marks) B. In deciding a transfer pricing method, advise management on: i. negotiated transfer pricing ii. market-based transfer pricing (4 marks) C. Highlight ONE (1) advantage and ONE (1) disadvantage of the market-based transfer pricing method. (2 marks) (Total 20 marks)

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