COST ACCOUNTING
TRANSFER PRICING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In the case of using the TNMM method, the most appropriate PLI to determine the fairness of the product purchase price of a distributor company (tested party) that sells its products to independent parties and bears the risk of product sales, is ____
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Return on Assets.
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Return on Equity.
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Return on Sales.
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Berry Ratio.
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Explanation:
Detailed explanation-1: -The Net profit indicator or Profit Level Indicator (PLI) is the ratio of net profit to an appropriate base (e.g. costs, sales, assets).
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