Transfer pricing with third party consequences, Managerial Accounting

Transfer pricing with third party consequences

Transfer prices are used not only for internal record keeping and performance evaluation purposes.

There are several settings where transfer prices have direct cash consequences for a company. The most widely cited case is in interstate and international transactions where transfer prices may affect tax liabilities, royalties or other payments due to different government jurisdiction. Since tax rates differ across states, or jurisdictions, companies have an incentive to establish a transfer price which will increase the income in the lower tax jurisdiction and decrease income in the higher tax jurisdiction.

Posted Date: 12/8/2012 5:26:31 AM | Location : United States







Related Discussions:- Transfer pricing with third party consequences, Assignment Help, Ask Question on Transfer pricing with third party consequences, Get Answer, Expert's Help, Transfer pricing with third party consequences Discussions

Write discussion on Transfer pricing with third party consequences
Your posts are moderated
Related Questions
Q. What is the issue price for Bond A and B ? On December 31, 20x7, the Jill Corporation issued $20,000,000 of 15 year face value bonds. The bonds pay interest on June 30 and D

One of the main deities of the financial manager is to keep a sound liquidity position for the firm hence the dues are settled as and while they mature. Separately from this the fi

MULTIPLE REGRESSION The least square regression equation discussed above was based on the assumption that total cost was determined by only one activity based variable. However

ALGEBRAIC ANALYSIS The supposition of linear cost behavior allows use of straight-line graphs and simple linear algebra in cost-volume study. The net cost is a semi-variable c

What is Programmer budgeting It is a combination of programming and systems refers to the activity and system analysis refers to cost benefit analysis or operations research. I

INTRODUCTION AND RATIONALE The purpose of this assignment is to help students further develop a number of the skills and knowledge required and valued by the accountancy profe

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

accepted#Regarding the Overhead costs, these are allocated based on Direct Labor;

The Rohr Company’s old equipment for making subassemblies is worn out. The company is considering two courses of action: (a) Completely replacing the old equipment with new equipme