Question: Question 3: Identify two main advantages and two behavioural implications of the use of the following transfer pricing methods: a. Market Based Transfer Price b.

Question 3: Identify two main advantages and two behavioural implications of the use of the

following transfer pricing methods:

a. Market Based Transfer Price

b. Standard Cost Based Transfer Price

Note: There should be four advantages and four behavioural implications in total, i.e. each transfer pricing method will have two disadvantages and two behavioural implications.

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