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
Integer Programming It is a technique for solving a linear programming model with an added constraint that the decision variables must only be non-negative integers. In the

The management of Popular Stores Sdn. Bhd. are in the process of exploring the company’s investment opportunities.

Explain the practical application of differential costing with examples

Full Service Non Recourse: in this method the book debts are purchased through the factor assuming 100 percent credit risk. In case of default through the debtor the whole risk is

Risk : Risk includes circumstances or events that may or may not take place though whose probability of occurrence can be predicted from the past records. In this atmosphere, t

Laplace Criterion of Rationality This criterion holds that if decision makers do not know the probabilities of the various states of nature and have no reason to think otherwis

given a scenario when iddle capacity is less than the special order.in this case should we accept or reject the order

Ask queThe standard cost of chemical mixture ~ PQ’ is as follows: 40% of material P @ Rs. 400 per kg. 60% of material Q @ Rs. 600 per kg. A standard loss of 10% is normally anticip

Game Theory Game theory was developed for the purpose of analyzing competitive situation involving conflicting interests. In game theory, there are assumed to be two or more pe

Going rate or follow the crowd pricing:- In this method the firm price its products at the similar level as that of the competition. This method supposes that there will be no