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15 January, 17:52

Which two methods are used most often when establishing a transfer price?

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  1. 15 January, 18:43
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    Cost-based transfer pricing and market-based transfer pricing are the methods that usually used in establishing a transfer price.

    The cost-based pricing is used determine the price of the product by the method of calculation. It is the best way the company can maximize profit.

    The market-based pricing it when the company will look for the other product with similar price and evaluate it.
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