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What are the Objectives of Intra company transfer pricing
The objectives of Intra company transfer pricing are:
1) Evolution of performance and efficiency of each division.
2) Assessment of profitability of each division.
3) Decision marking whether to manufacture of buy sell as it is or to process it further, for each division.
4) Maintenance of secrecy of the cost of production of each division.
5)Encourage each division to each profit on competitive basis, maximize them and thereby accumulate greater profit to the company as a whole.
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