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Effects of the Various Transfer-Pricing Methods

What effects do the various transfer-pricing methods have on results and manager behavior and what would the differences (if any) be in a multinational organization?

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Transfer-pricing can significantly affect the bottom line of a responsibility center. For a profit center, the transfer price is its revenue while for another it is an expense, hence for the profit center, the higher the transfer price ...

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This solution discusses the effects of the various transfer-pricing methods.