1. What is transfer pricing? Why is transfer pricing necessary?  
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3. Explain 5 factors that influence transfer pricing policy of firms.  
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5. Consider that a firm has two divisions A & B. The products produced by Division A are transferred to Division B for further processing. Division A does not have an external market for its output. Division B cannot buy the products produced from any other sources either. As a consultant what transfer method would you recommend for the situation and why? 
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Answer rating: 100% (QA)

Transfer pricing is the setting of prices for goods and services sold between controlled or related entities within an enterprise Its necessary for va... View the full answer