Transfer Pricing Methods Explained
Channel: Farhat Lectures. The # 1 CPA & Accounting Courses
Date: 2020-12-01

IN this video, I discuss transfer pricing methods.  The three common transfer pricing methods are market based, cost based and negotiated prices. Transfer price is the price at which related parties transact with each other, such as during the trade of supplies or labor between departments. Transfer price is used when individual entities of a larger multi-entity firm are treated and measured as separately run entities.

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