(a) Outline and discuss the main objectives of a transfer pricing system. (5 marks) (b) Consider the...

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(a) Outline and discuss the main objectives of a transfer pricing system. (5 marks)

(b) Consider the advantages and disadvantages of.

(i) market price-based transfer prices; and

(ii) cost-based transfer prices.

Outline the main variants that exist under each heading

c) Discuss the relevance of linear programming to the setting of transfer prices

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