Question: Why is transfer pricing important? It plays a key role in determining the ultimate profitability of the company as a whole. It plays a key

Why is transfer pricing important?

It plays a key role in determining the ultimate profitability of the company as a whole.

It plays a key role in determining the profitability of the division that sells the product.

It plays a key role in determining the profitability of the division that buys the product.

It plays a key role in determining the profitability of both the selling and buying divisions of the company.

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