Designing International Transfer Pricing Systems
Abstract
Two companion articles have considered transfer pricing objectives and factors influencing the designing of these systems. This article, the last in the series, treats the topic of designing transfer pricing systems. Since many multinational firms have subsidiaries in the U.S., it is worthwhile to consider the U.S. Internal Revenue Service regulations regarding transfer pricing. Transfer pricing systems can be designed under a variety of alternative market scenarios. These topics are discussed in the first two sections of the article. The designing of profit‐oriented and cost‐oriented transfer pricing systems are considered in the next two sections. A mention of methods for selecting transfer pricing systems concludes the article.
Citation
Knowles, L.L. and Mathur, I. (1985), "Designing International Transfer Pricing Systems", Managerial Finance, Vol. 11 No. 2, pp. 21-24. https://doi.org/10.1108/eb013548
Publisher
:MCB UP Ltd
Copyright © 1985, MCB UP Limited