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State four objectives of a transfer pricing system.

      

State four objectives of a transfer pricing system.

  

Answers


Kavungya
(i) To provide information that motivates divisional managers to make good economic
decisions. This will happen when actions that divisional managers take to improve the
reported profit of their divisions also improves the profits of the company as a whole.
(ii) To provide information that is useful for evaluating the managerial and economic
performance of the divisions.
(iii) To intentionally move profits between divisions or locations.
(iv) To ensure that divisional autonomy is not undermined.
Kavungya answered the question on May 7, 2021 at 06:20


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