- Transfer pricing can be used to motivate divisional managers especially where their remuneration is based on divisional profits
- Transfer pricing can provide a reliable base for decision making and ensure that optimal decisions are made.
- To allow performance evaluation of divisions and gauge divisional performance.
- To ensure divisional autonomy.
- To value intra-group transactions involving semi-finished items without a competitive market.
Wilfykil answered the question on February 25, 2019 at 11:49
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