COST ACCOUNTING
TRANSFER PRICING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Characteristics of Goods and Services, FAR, Contract Terms, Economic Conditions, Business Strategy
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Characteristics of Goods and Services, FAR, Contract Terms, Economic Conditions, Management
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Royalty Characteristics, FAR, Contract Terms, Economic Conditions, Management
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Royalty Characteristics, FAR, Contract Terms, Economic Conditions, intragroup transactions
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Detailed explanation-1: -These are attributes of the transactions or parties that could materially affect prices or profits, including the characteristics of the property or services; functional analysis; contractual terms; economic circumstances and business strategies pursued.
Detailed explanation-2: -Comparability analysis is an essential step in any transfer pricing analysis in order to gain a correct understanding of the economically significant characteristics of the controlled transaction and of the respective roles of the parties to the controlled transaction.
Detailed explanation-3: -An example would be two comparable distributors of consumer goods of the same industry segment, where the goods distributed may not be exactly the same, but the functional analyzes of the two distributors would be comparable.