FINANCE

TRANSFER PRICING METHODS

There are different methods of pricing goods and services for the purpose of determining appropriate price.    some of the methods are highlighted below.

1.Cost plus margin.
2.Cost plus markup.
3.Comparable price method.
4.Profit split method.
5.Cost contributory method.
6.Expected cashflow method from asset/invention.
7.Advance pricing agreement.

Sometimes it becomes more difficult to price a product or services.
For example pricing invention is more difficult to do.
However there are legal requirements for pricing goods and services for tax purposes as specified by different countries.

Disclaimer: Obi Azubuike is not by this publication acting as a professional advisers and therefore not liable to any  damage whatsoever for your acting or refraining to act based on  this publication. Consult your professional for advice. 

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