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Which of the following is not a commonly used approach to setting transfer prices?
A) market price approach
B) revenue price approach
C) negotiated price approach
D) cost price approach
Transfer Prices
Prices at which goods and services are sold between departments within the same company or between affiliated companies.
Market Price Approach
A valuation method that estimates the value of a good, service, or asset based on the current market price of comparable items.
Cost Price Approach
A valuation method focusing on determining the totals costs incurred to acquire or produce an asset, including all expenses.
- Gain an insight into the concept of transfer pricing along with its procedural tactics.
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Learning Objectives
- Gain an insight into the concept of transfer pricing along with its procedural tactics.
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