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CIMAPRO19-P02-1 Exam - Topic 8 Question 69 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 69
Topic #: 8
[All CIMAPRO19-P02-1 Questions]

Which of the following statements regarding multinational transfer pricing is INCORRECT?

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Suggested Answer: A, C, D

by Solange at Apr 21, 2023, 06:34 PM

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Golda
4 months ago
I thought inflated prices would hurt the buying division, not help it!
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Stephane
4 months ago
D makes sense; companies want to minimize costs in high-tax areas.
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Douglass
4 months ago
Wait, are we sure about option B? Seems off.
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Burma
4 months ago
Totally agree, especially with different laws in play.
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Frank
4 months ago
Transfer prices definitely impact tax liabilities.
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Bernardo
5 months ago
D sounds tricky. I feel like setting transfer prices to increase costs in high-tax countries could be a strategy, but I'm not completely confident.
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Paris
5 months ago
I think C makes sense because companies often want to shift profits to lower-tax jurisdictions.
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Marnie
5 months ago
I'm a bit unsure about B. If transfer prices are inflated, wouldn't that actually decrease profits for the buying division?
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Aracelis
5 months ago
I remember studying that transfer prices can definitely impact tax liabilities, so A seems correct to me.
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Katy
5 months ago
The wording of these options is a bit confusing. I'll need to read them closely to make sure I understand the differences.
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Viola
5 months ago
Okay, let me see. Unsuccessful teams are not provided with incentives, they're not organized, and they don't have enough time. I think option C is the best answer here.
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Florinda
5 months ago
This is a good opportunity to demonstrate my understanding of data privacy regulations. I'll make sure to thoroughly analyze the scenario and the answer choices to identify the one that is not true for Maurya Logistics.
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Galen
10 months ago
Wait, is this a trick question? I feel like they're trying to catch us out with these transfer pricing concepts. Better double-check my answers!
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Markus
9 months ago
C) Companies have incentives to set transfer price to increase revenues in low-tax countries.
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Kanisha
9 months ago
B) If transfer prices are inflated, this will increase profits of buying division.
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Carlton
10 months ago
A) Transfer prices affect tax liabilities and royalties because of different laws in countries.
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Rutha
10 months ago
Option A seems to be the incorrect statement. Transfer prices do affect tax liabilities and royalties due to different laws, so that one is actually correct.
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Elden
10 months ago
Haha, these transfer pricing questions are tricky. Gotta keep an eye out for those sneaky incorrect statements!
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Peter
8 months ago
D) Companies have incentives to set transfer price to increase costs in high-tax countries.
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Santos
8 months ago
C) Companies have incentives to set transfer price to increase revenues in low-tax countries.
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Rosendo
8 months ago
B) If transfer prices are inflated, this will increase profits of buying division.
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Keneth
8 months ago
A) Transfer prices affect tax liabilities and royalties because of different laws in countries.
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Shalon
9 months ago
D) Companies have incentives to set transfer price to increase costs in high-tax countries.
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Tamar
9 months ago
C) Companies have incentives to set transfer price to increase revenues in low-tax countries.
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Adelaide
9 months ago
B) If transfer prices are inflated, this will increase profits of buying division.
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Emeline
9 months ago
A) Transfer prices affect tax liabilities and royalties because of different laws in countries.
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Ellen
10 months ago
I think option D is the right answer here. Companies do have incentives to set transfer prices to increase costs in high-tax countries to minimize their tax liabilities.
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Donette
11 months ago
Option B is incorrect. If transfer prices are inflated, this will actually decrease profits of the buying division, not increase them.
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Dorinda
9 months ago
B) If transfer prices are inflated, this will actually decrease profits of the buying division, not increase them.
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Cristina
10 months ago
A) Transfer prices affect tax liabilities and royalties because of different laws in countries.
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Evangelina
11 months ago
Why do you think that?
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Devorah
11 months ago
I disagree, I believe the answer is C.
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Evangelina
11 months ago
I think the answer is D.
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