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In what circumstances will negotiated transfer price be used

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Reference no: EM13888746

1. When determining the minimum transfer price, what is meant by the "opportunity cost"?

2. In what circumstances will a negotiated transfer price be used instead of a market-based price?

3. Explain how companies use transfer pricing between divisions located in different countries to reduce tax payments, and discuss the propriety of this approach.

Reference no: EM13888746

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