Cost-plus pricing : approach and application

Part of a comparative survey examining the application of the cost-plus method. The two main issues are the determination of the margin and the determination of the cost basis. This issue contains the following country reports: Australia, Italy, Japan, Korea, Netherlands and Portugal. This article will outline the arrangements in place in Australia for the determination of the cost base and appropriate mark-up for the application of the cost-plus method to international related-party transactions.