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Cost & pricing
Transfer pricing
The price one part of a business charges another for goods or services, which moves profit between units, entities, and tax jurisdictions.
Owned by: VP / CFOTest band: VP / CFO
In practice
Inside one country it is a management-reporting choice. Across borders it is tax law with documentation requirements; get advice.
The kind of thing the test asks
- A US subsidiary sells to its Irish parent at cost. The likely issue is…
More in cost & pricing
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