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Transfer prices

What are transfer prices? Discuss their major disadvantages.

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Price transfer is what part of a company charges another part of the same company for goods and services. It is the price at which an item is transfer internally between two units of the same company. The main purpose of transfer pricing is to induce optimal decision making in a decentralized organization (Huddart. ...

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Price transfer is what part of a company charges another part of the same company for goods and services. It is the price at which an item is transfer internally between two units of the same company. The main purpose of transfer pricing is to induce optimal decision

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