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  3. Study Set
    Management and Cost Accounting
  4. Exam
    Exam 20: Transfer Pricing in Divisionalized Companies
  5. Question
    If the Divisions Exchanging Goods Are Located in Different Countries
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If the Divisions Exchanging Goods Are Located in Different Countries

Question 19

Question 19

Multiple Choice

If the divisions exchanging goods are located in different countries with different tax rate structures, the key determinant of transfer prices could be based largely on:


A) variable costs.
B) negotiations.
C) market prices.
D) tax minimization strategy.

Correct Answer:

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