Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Transfer Pricing Methods
Transfer pricing methods are concerned with the alternative means by which a transfer price can be set and its impact on organizations gauged. Emmanuel and Otley bring together a number of views of transfer pricing methods in practice. Essentially, they report that there are three categories of transfer price: cost based, market based and negotiated. Within the surveys reported, in terms of very rough approximations, about 20% of companies used negotiated prices; about 30% of companies used market values and about half used cost based prices. For each category, a good degree of discretion existed to develop alternative bases at a detailed level. For market based prices, for instance, competitors' prices, list prices, most recent bid and values adjusted by a discount provided alternative bases. The description which follows does not go to such a level of detail but concentrates on four main approaches: absorption cost bases, variable cost bases, market value bases and negotiated value bases. A final section describes the use of linear programming.
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
Explain Operating budgets These budgets relate to the dissimilar activities or operation of a firm the number of such budgets depends upon the size and nature of business. The
Transfer Pricing Transfer pricing can contribute directly to the process of departmental performance measurement and indirectly to the measurement of product performance. A
In this section we have discussed the motives for conducting cash balances. In addition, we have discussed cash deficit or surplus situation and how it can be contained by the use
Market value There is universal agreement that in competitive markets a market value based transfer price should achieve optimal results. In this circumstance, it can be expected
TEMPORARY CLOSURE OF FACTORY OR DEPARTMENT Here there is a similar situation to that of discontinuance of a product such as Model N40. A factory which is expected to earn some
The Braggs & Struttin'' Company manufactures an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the "Snooper" are given below, based on sales of
What are the limation of semi variable cost and how to overcome it?
can you better explain to me the classification by traceability and the classification by function?
State the factors of CVP The three factors of CVP analysis I e cost volume and profit are interconnected and dependent on one another . for example profit depends upon sales se
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd