Solutions 1 
6-4 Medoc Company
Advice given to the author of the constraints in the organizational structure of the Medoc Company :
* There should be limits - limits on authority division clearer and transparent primarily related to transfer pricing policies of both the milling division and consumer products division .
* Considering the proposal of the Medoc Company 's top management regarding the calculation of the transfer pricing policy between milling division and consumer products division that the division of the budget and the return of 10 % change -ubah because there is no proper way of comparison in the products sold by the division of consumer products , it is still relevant that the organizational structure of the company 's two divisions still unclear authority so hard to establish nominal species selection payback percentage between the two divisions .
If there is no limit according to the authors , the organizational structure will in turn make the condition less and less and less favorable , given the previous condition that the transfer pricing policy made many complaints by consumer product division , such as the cost of production inefficiencies that should be the responsibility of the milling division instead become a burden products division consumers , are also subject to deduction of 75% investment by milling division when this division does not include additional new equipment , inventory levels , and others - others . Another impact because there is no limitation will affect the performance of the two divisions in the company because there is still inequality and complaints - complaints that occur mainly the issue of cost - the cost of the underlying transfer pricing between divisions .
7.4 Aloha Products
1. Overview of Aloha Products:
Aloha Products is a United States-based coffee-processor company that has been providing non-specialty and low-priced coffee for over a hundred years. It purchases the raw materials or what buyers and sellers refer
Advice given to the author of the constraints in the organizational structure of the Medoc Company :
* There should be limits - limits on authority division clearer and transparent primarily related to transfer pricing policies of both the milling division and consumer products division .
* Considering the proposal of the Medoc Company 's top management regarding the calculation of the transfer pricing policy between milling division and consumer products division that the division of the budget and the return of 10 % change -ubah because there is no proper way of comparison in the products sold by the division of consumer products , it is still relevant that the organizational structure of the company 's two divisions still unclear authority so hard to establish nominal species selection payback percentage between the two divisions .
If there is no limit according to the authors , the organizational structure will in turn make the condition less and less and less favorable , given the previous condition that the transfer pricing policy made many complaints by consumer product division , such as the cost of production inefficiencies that should be the responsibility of the milling division instead become a burden products division consumers , are also subject to deduction of 75% investment by milling division when this division does not include additional new equipment , inventory levels , and others - others . Another impact because there is no limitation will affect the performance of the two divisions in the company because there is still inequality and complaints - complaints that occur mainly the issue of cost - the cost of the underlying transfer pricing between divisions .
7.4 Aloha Products
1. Overview of Aloha Products:
Aloha Products is a United States-based coffee-processor company that has been providing non-specialty and low-priced coffee for over a hundred years. It purchases the raw materials or what buyers and sellers refer