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norsok standard pdf - Cost based method calculates transfer price on the cost of the goods or services available as per the cost accounting records of the company. norsok standard pdf - may have a significant effect on the price makes it exceedingly difficult to find a transaction--much less transactions--that are sufficiently comparable. However, the fact that virtually any minor change in the circumstances of trade (billing period, amount of trade, branding, etc. This makes it the easiest to conceptually grasp, as the arm's length price is, quite simply, determined by the sale price between two unrelated corporations norsok standard pdf. The method is generally accepted by the tax customs authorities, since it provides some indication that the transfer price approximates the real cost of item. For example, the arm's length price for a transaction involving the sale of finished clothing to a related distributor would be determined by adding an appropriate markup to the cost of materials, labour, manufacturing, and so on norsok standard pdf. norsok standard pdf - Cost based approaches are how ever not as transparent as they appear. Should they exist, such comparable transactions fall into two categories: external comparables and internal comparables.
