IIA Exam IIA-ACCA Topic 1 Question 79 Discussion

Actual exam question for IIA's IIA-ACCA exam

Question #: 79
Topic #: 1

In which of the following scenarios would transfer pricing be used?

ACompany A owns Company B; Company B sells goods to Company A.

BCompany A does not own Company B. Company A charges Company B a fee to sell Company B's goods without taking ownership of the goods.

CCompany A owns both Company B and Company C; all three companies sell goods to the public.

DCompany A moves goods internally from one location to another.

Show Suggested Answer

Suggested Answer: B

by Dan at Jun 21, 2024, 04:45 AM

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11 hours ago

I agree with Tora. In scenario A, there is a related party transaction which requires transfer pricing to determine fair market value.

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3 days ago

I think transfer pricing would be used in scenario A.

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