Explain about intra company transfer pricing, Managerial Accounting

Assignment Help:

Intra company transfer pricing

A company engaged in production may have several segments division or departments doing production jobs or manufacturing party or fully finished goods. These division may require intra transfer of the goods manufacture by them for a purpose that the finished goods of a division may be used as raw material by the other for further working or proceeding to make another or fully finished goods. The question arises at what price the gaoods should be transferred by one division to the other.

In most of the cases it is the cost price if it is so no division can exhibit its own efficiency of working and can be held responsible for its inefficient. To avoid it each division is treated as semi autonomous in character and it is added to they division it would no doubt fetch greater revenue to itself but the transferee division would be put to s loss as its raw material coming to it form that division would be more costly and therefore this transferee division may like to buy directly from the market rather than to have it from its co division. Therefore in this situation no division would like to fix a price for transfer higher than the market price.

 


Related Discussions:- Explain about intra company transfer pricing

Explain value added analysis and top management styles, 1. Explain Value Ad...

1. Explain Value Added Analysis along with the major factors included in Management Accounting Analysis. 2 Identify the several top management styles and define their implicatio

Planning, Planning, Directing, and Controlling A clever sign hanging on...

Planning, Directing, and Controlling A clever sign hanging on the wall of a business establishment: "The Managers are paid to manage the work-- If There Were No Problems we wou

International management challenges of globalization., what is the topic ab...

what is the topic about? what are the practical implications? what are the practical criticisms?

What is traditional costing, What is traditional costing In traditiona...

What is traditional costing In traditional costing overheads are first related to cost centers (production and service centres) and then to cost object, i.e. production. ABC o

Information system project management, Hi there, i am looking an expert to ...

Hi there, i am looking an expert to make my assignments for this subject and i do have other subjects as well. Let me know how you can go through my assignment.

Feed-forward control system, Feed-forward control system Feed-forward c...

Feed-forward control system Feed-forward control system describes a system in which deviations in the system are anticipated in a forecast of future results, so that corrective

Mr, i want to get the answer for exercises 2.1 and 2.2 on strategic and tac...

i want to get the answer for exercises 2.1 and 2.2 on strategic and tactical decisions

Flexible budgeting, FLEXIBLE BUDGETING Flexible budget may be used in one ...

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

Hold-up problem or another problem, According to the Philadelphia Inquirer,...

According to the Philadelphia Inquirer, in 2004 the city of Philadelphia planned to spend $14 million to convert the Convention Center into an appropriate venue for the Republican

Explain the product life cycle costing, Product life cycle costing It i...

Product life cycle costing It is an approach used to give a long term picture of product line profitability feedback on the effectiveness of life cycle planning and cost data t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd