What are the objectives of intra company transfer pricing, Managerial Accounting

Assignment Help:

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.

 


Related Discussions:- What are the objectives of intra company transfer pricing

Cash and treasury management, Cash is a significant current asset for the o...

Cash is a significant current asset for the operations of business. Cash is the fundamental input that maintains business running smoothly and continuously. In excess of cash and l

Break even analysis, BREAK EVEN ANALYSIS Break even analysis is mainly us...

BREAK EVEN ANALYSIS Break even analysis is mainly used to explain the relationship between the cost incurred, the volume operated at and the profit earned. To compute the breakev

Explain short term budgets, Explain Short term budgets Short term budge...

Explain Short term budgets Short term budgets: these budgets are generally for one or two years and are in the form of monetary terms. The consumer's good industries like su

Advise c''man on the form of business entity he should select, Coleman, a m...

Coleman, a married taxpayer, is going to establish a manufacturing business. He anticipates that the business will be profitable immediately due to a patent he holds. He predicts t

Jit purchasing arrangements-jit benefits, JIT purchasing arrangements J...

JIT purchasing arrangements JIT philosophy also extends to adapting JIT purchasing techniques whereby delivery of material immediately precedes their use. By arranging with sup

International transfer pricing-compliance and documentation, International ...

International transfer pricing Transfer pricing is a perennial issue, within the international tax community (Richard Casna, Accounting and Business, in the year February 1988)

Identify the management assertions, Identify the management assertions rela...

Identify the management assertions related to each of the fictitious supplier credits and unrecorded amounts in accounts payable using the facts presented

Questions., how long will it take to get answers after question are submitt...

how long will it take to get answers after question are submitted

What are the disadvantages of ratio analysis, Disadvantages of ratio analys...

Disadvantages of ratio analysis 1) False results: ratios are based upon the financial statement. In case financial ratio is incorrect or the data upon which ratios are based

Break event, The Braggs & Struttin'' Company manufactures an engine for car...

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

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