In terms of bigger and bigger market globalization, business subjects or consolidation groups more and more expand outside of their national borders. With this kind of connection, multinacional groups can expand their business, make competitive advantages, and they can reduce their tax liabilities, which means increase their consolidated profit with internal transfers of products or services by their related companies from different tax systems. The prices at which transfer takes place for the products or services between related businesses are referred to as transfer pricing, but effects of their application depend on the action of the group which may be national or international. There are many different transfer pricing methods, and most countries are determing them according to OECD guidelines on transfer pricing for multinational companies and tax authorities., and these methods implement the Arm's Length Principle, which allows equal tax treatment between related and unrelated companies.. This paper will describe in more detail three main transfer pricing methods from the aspect of management accounting, with their pros and cons. Examples of action of each kind of method on profits and taxes will be shown, because the profit can be transferred from countries with higher tax burden in countries with lower tax burden, so it means that the use of transfer pricing is very important problem for national and international law authorities in their regulation which is described in paper. If the group operates internationally, then by law they must produce the documentation of transfer pricing by which it provest that all intra-group transfers rescpected the fundamental principle, the Arm's Lenght Principle, so its simplistic representation will be seen in the paper.