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Part $1$

How should managers consider income tax issues when choosing a$$ transfer$-$pricing method?

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Part $1$

Alternative$$ transfer$-$pricing methods

can result in sizable differences in the reported operating income of divisions in different income tax jurisdictions

can result in sizable differences in the reported operating income of divisions in different income tax jurisdictions

will not affect the reported operating income of divisions in different income tax jurisdictions

$.$

If these jurisdictions have different tax rates or$$ deductions, the net income of the company as a whole

can be affected by the choice of the transfer$-$pricing method

can be affected by the choice of the transfer$-$pricing method

will not be affected by the choice of the transfer$-$pricing method

$.$

$$Therefore$,$ managers

should

have no need to

should

consider income tax issues when choosing a$$ transfer$-$pricing method.