What transfer pricing alternatives is based on determining an appropriate markup?

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06-01-2021
Business

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What transfer pricing alternatives is based on determining an appropriate markup?

Sagot :

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Lanuelidn Lanuelidn · Answer 1 · 2021-01-06T11:30:02-05:00

Answer:

Resale-price method.

Explanation:

Resale-price method is a transfer pricing alternatives which is typically based on determining an appropriate markup and as such, the markup is based on gross profits of unrelated firms selling similar products.

This ultimately implies that, it is a transfer pricing alternatives which is typically based on the price at which a particular product or goods purchased from an associated enterprises is then resold to a third-party such as an independent enterprise.

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