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Why should managers consider income tax issues when choosing a$$ transfer$-$pricing method?

A$.$

Alternative$$ transfer$-$pricing methods can result in sizable differences in the reported operating income of divisions in the same income tax jurisdictions. If these jurisdictions have different tax rates or$$ deductions, the net income of the company as a whole can be affected by the choice of the$$ transfer$-$pricing method.

B$.$

Alternative$$ transfer$-$pricing methods can result in sizable differences in the reported operating income of divisions in different income tax jurisdictions. If these jurisdictions have different tax rates or$$ deductions, the net income of the company as a whole can be affected by the choice of the$$ transfer$-$pricing method.

C$.$

Alternative$$ transfer$-$pricing methods can result in small differences in the reported operating income of divisions in different income tax jurisdictions. If these jurisdictions have different tax rates or$$ deductions, the net income of the company as a whole can be affected by the choice of the$$ transfer$-$pricing method.

D$.$

Alternative$$ transfer$-$pricing methods can result in small differences in the reported operating income of divisions in different income tax jurisdictions. If these jurisdictions have different tax rates or$$ deductions, the net income of the company as a whole will not be affected by the choice of the$$ transfer$-$pricing method.

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