Transfer pricing-performance evaluation, Managerial Accounting

Transfer Pricing and Performance Evaluation

Transfer pricing is simple in concept and yet complex in implementation. It provides a divisional output valuation where output from one division becomes the input of another division within the same organization. This is often necessary to the operation of profit or investment centers. Complexity in implementation arises from the availability of a number of valuation bases, each with their own implications for the ways in which an organization is to be managed. This section provides a description of the major valuation bases found in practice and in theory. Transfer prices are necessary to the operation of performance measurement based on profit and investment centers and the topic includes a critical appraisal of performance measurement in general.

This is divided into three. The first section describes the purpose of transfer pricing. In the second section, methods of transfer pricing are described and briefly evaluated. In the final section, a critical appraisal of performance measurement in general and transfer pricing in particular is provided.

Posted Date: 12/8/2012 5:08:37 AM | Location : United States







Related Discussions:- Transfer pricing-performance evaluation, Assignment Help, Ask Question on Transfer pricing-performance evaluation, Get Answer, Expert's Help, Transfer pricing-performance evaluation Discussions

Write discussion on Transfer pricing-performance evaluation
Your posts are moderated
Related Questions
Viti Ltd, located in southern Viti Levu, manufactures a variety of industrial valves and pipe fittings that are sold to customers in the eastern states. Currently, the company is o

Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?

Budgets An essential planning component is budgeting. Budgets sketch the financial plans for an organization. There are number of budget types. Operating Budgets -- A plan

using the operating cycle and any other financial management knowledge,discuss the applicabilty of such cycle to poultry

The most ticklish difficulty that is faced through the finance manager is the resolve of the amount of working capital requirement at a specific level of production. To resolve thi

FLEXIBLE BUDGETING Flexible budget may be used in one of two ways: Planning and Control. At the planning stage when budgets are set, to reduce the effect of uncertainty. For ex

Q. Show the Pricing during market growth? Pricing during market growth: in the growth stage there is steep rise in the turnover of the company. As prices of new competitors

Explain Support activitiesand production process activity Support activities are for example schedule production set up machine purchase materials inspect item customer orde

Scenario - Ahi Corporation is one of your clients in Hawaii. The company had a good year last year and owes the IRS $100,000,000, due on March 15. There are no penalties or interes

Compute the equ units of production?