7 Transfer Pricing LEARNING OBJECTIVES : After studying this chapter students will understand. * Purpose of transfer pricing * Responsibility of a division as responsibility centre * Conflicts between the divisions * Setting of transfer price where the profit of the organisation can be higher. 7.1 Introduction The whole organisation can be divided into a number of divisions‚ the performance of each division can be measured in terms of both the income earned and the
Premium Variable cost Costs
The Fuqua School of Business Duke University International Strategy: WBA 434 Professors Heath‚ Huddart‚ & Slotta Transfer Pricing 1. Overview An essential feature of decentralized firms is responsibility centers (e.g.‚ cost-‚ profit-‚ revenue-‚ or investment-centers). The performance of these responsibility centers is evaluated on the basis of various accounting numbers‚ such as standard cost‚ divisional profit‚ or return on investment (as well as on the basis of other non-accounting measures‚ like
Premium Transfer pricing Economics Pricing
MANAGING TRANSFER PRICING Sarbanes-Oxley requires a company to establish that it has internal controls to ensure accurate financial reporting and that the auditor attest to the assessment of those controls. An obvious concern for all multinationals after SOX is whether there are effective controls in place to deal with transfer pricing exposure. An increasingly important element of transfer pricing documentation relates to the influence of legislation‚ ethical standards‚ and associated matters
Premium Transfer pricing Tax haven Internal Revenue Service
Chapter 11 Pricing Strategy Multiple Choice Questions 1. _____ on pricing decisions concern primarily the nature of the target market and expected reactions of consumers to a given price or change in price. a. Government influences b. Environmental influences c. Supply influences d. Demand influences Answer: d Learning Objective: 11-1 Level of Difficulty: Easy Bloom’s: Knowledge AACSB: Analytic Topic: Demand Influences On Pricing Decisions Page: 163 Explanation: Demand
Premium Pricing
ADDIS ABABA UNIVERSITY SCHOOL OF GRADUATE STUDIES DEPARTMENT OF ACCOUNTING AND FINANCE BANK SELECTION DECISION: FACTORS INFLUENCING THE CHOICE OF BANKING SERVICES By: Goiteom W/mariam June 2011 Addis Ababa BANK SELECTION DECISION: FACTORS INFLUENCING THE CHOICE OF BANKING SERVICES A Thesis Submitted to the School of Graduate Studies of Addis Ababa University in Partial Fulfillment of the Requirements for the Degree of Master of Science in Accounting and Finance By: Goiteom W/mariam
Premium Bank
What Factors Affect the Labor Market? Adrienne Rudy ECON 210 Professor Kenneth Tirpack February 14‚ 2015 As a professional recruiter‚ I would prefer a candidate with a college degree. Even if the degree obtained does not exactly align with the position I am looking to fill‚ a college degree can give me a lot of information about an applicant. One of the most important thing that a college degree tells me is that the person is a hard worker. It takes drive‚ hard work‚ and dedication to obtain
Premium Personality psychology Higher education Jeff Bezos
Table of Contents 1. The Need for Pricing 2. Pricing Software Industry Products 3. Licensing 4. Pricing Discrimination 5. Bundling 6. Other Pricing Issues 7. Summary The Need for Pricing Pricing has far reaching effects beyond the cost of the product. Pricing is just as much a positioning statement as a definition of the cost to buy. Price defines the entry threshold: who your buyers are and their sensitivities‚ which competitors you will encounter‚ who you will
Premium Marketing Pricing
“What is the so-called pricing process?” Pricing is the determination of monetary amount in exchange on the commodity sold or the service rendered by the business. In pricing‚ the Business should consider the following factors that affect pricing: 1. The manufacturing or production cost. Variable and fixed costs are the costs incurred in a product or service. Examine whether the costs that have been incurred in the commodity sold or service rendered are going to be covered up by the revenue
Premium Marketing Supply and demand
Pricing is one of the most important elements of the marketing mix as it is the only mix‚ which generates a turnover for the organization; the remaining 3p’s are the variable cost for the organization. It costs to produce and design a product; it costs to distribute a product and costs to promote it. Price must support these elements of the mix. Pricing is difficult and must reflect supply and demand relationship (Constantinides‚ 2006). Pricing a product too high or too low could mean a loss of sales
Premium Pricing Marketing
Definition Pricing is a powerful element of a small business’s marketing strategy. The pricing structure of your products and services‚ and how it relates to your competitors’ pricing strategies and the expectations of consumers‚ play an important role in creating an image for your company and establishing a specific customer base. An analysis of pricing strategy reveals that companies have a range of options in their pricing toolkit they can use to augment their marketing initiatives. Pricing strategy
Premium Pricing Marketing