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Cost based Transfer Price

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Lessons List | 11 Lesson


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37 Reviews

Jad Awar

Amazing course, very informative, straightforward, and easy to understand. 2023-10-31

Basim Azhar

It is very useful to get the concept through easy explanation. This is what I get. 2023-10-04

Ashish Lakkoju

Simple explaination of concept and deep dive in to the chapter. 2023-09-15

Geetha S

Amazing course 2023-08-22

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Course Description

What is the purpose of transfer pricing? A transfer price arises for accounting purposes when related parties, such as divisions within a company or a company and its subsidiary, report their own profits. When these related parties are required to transact with each other, a transfer price is used to determine costs.What is transfer pricing example? Transfer pricing is the setting of the price for goods and services sold between controlled (or related) legal entities within an enterprise. For example, if a subsidiary company sells goods to a parent company, the cost of those goods paid by the parent to the subsidiary is the transfer price.What is transfer pricing and why is it important? A transfer price is also essential to come up with a fair and equitable price when the transaction takes place between two common entities. Transfer price helps with the accounting of transactions with familiar entities. It, in turn, helps to determine their profit or loss