Transfer pricing-performance evaluation, Managerial Accounting

Assignment Help:

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.


Related Discussions:- Transfer pricing-performance evaluation

Zero based budgeting, areas where zero based budgeting can be effectively u...

areas where zero based budgeting can be effectively used?

Manufacturing cost, what are the different arguments against direct materia...

what are the different arguments against direct materials, direct labor, and factory overhead

Financial statement, how to i get financial report for my company Anuz Wpp

how to i get financial report for my company Anuz Wpp

Investing surplus cash, The requirement for working capital fluctuates acco...

The requirement for working capital fluctuates according the level of inventory, production, debtors and creditors etc. The working capital needs are not uniform during the year be

Strategic plan, How to write introduction on strategy plan

How to write introduction on strategy plan

The more competitive bid, Hornsby Manufacturing has four categories of ove...

Hornsby Manufacturing has four categories of overheads. The four categories and the expected overhead costs for each category for next year are as follows:   Maintenance  $140,000

Estimating working capital requirements, The most ticklish difficulty that ...

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

What are the advantages of activity based costing, Advantages of activity b...

Advantages of activity based costing 1) It helps understanding the behavior of overhead costs and their relations ship to products services customers and market segments. 2)

Cost concept, Cost concept . techniques of costing . absorption costing

Cost concept . techniques of costing . absorption costing

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