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What are the Objectives of Intra company transfer pricing
The objectives of Intra company transfer pricing are:
1) Evolution of performance and efficiency of each division.
2) Assessment of profitability of each division.
3) Decision marking whether to manufacture of buy sell as it is or to process it further, for each division.
4) Maintenance of secrecy of the cost of production of each division.
5)Encourage each division to each profit on competitive basis, maximize them and thereby accumulate greater profit to the company as a whole.
Maximum change in marginal Profit or Cost Just as we did in studying the permissible ranges for changes in resources, we are also interested in studying the permissible ranges
Types of games Four basic ways in which competitive situations (or games) can be classified are: (a) Number of Competitors: In game theory a competitor is characteriz
different methods used to assign manufacturing overhead
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Budgetary control According to CIMA the establishment of budgets relating the responsibilities of executive to the requirement of a policy and the continuous comparison of achi
1. Do you think that the tax minimization scheme described to Debbie Kishimoto is in harmony with the ethical behavior that should be displayed by top corpo- rate executives? Wh
Let a quarry's cost function of producing Q tons of stone per hour be given by TC = Q 3 - 10Q 2 + 40Q + 25, so that marginal cost function is MC= 3Q 2 - 20Q + 40. (i) Find th
Tom Emory and Jim Morris strolled back to their plant from the administrative offices of Ferguson & Son Manufacturing Company. Tom is manager of the machine shop in the company''s
Determine important factors while praparing sales budget The possible factors to be taken into account while preparing a sales budget are discussed as follows: 1) Past sales
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