Transfer Pricing Becomes Especially Complex When the Global Market Is

Multiple Choice

Transfer pricing becomes especially complex when the global market is involved because:

A) shipping materials across national lines involves payment of duties and taxes, and these become part of the total price of the goods.
B) issues of quality control can be serious, even when divisions of the same firm are involved.
C) a firm with activities in several countries can use transfer pricing as a tax-avoidance device and governments frown upon such activities.
D) the temperature and humidity differences between origins and destinations often damage the products.