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In 750 words or less, discuss the objectives of establishing a system of transfer pricing. What is such a system used for and what are

In 750 words or less, discuss the objectives of establishing a system of transfer pricing. What is such a system used for and what are its shortcomings when based on variable cost and full cost? Also discuss the implications of an external market; to what extent does the external market price improve over cost when creating transfer pricing?

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