Using the Comparable Profits Method of Transfer Pricing,the Transfer Price

Using the comparable profits method of transfer pricing,the transfer price is determined by:

A) backing into it based on objective measures of sales,operating expenses,and a reasonable profit margin on sales.
B) adding a standard profit margin to the operating expenses of the buying division.
C) dividing a reasonable amount of profit between the selling and buying divisions.
D) comparing the normal profits of the selling and buying divisions and basing the price on the highest margin.

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