3.10 May%204%20egs%20solns0.ppt

3.10 May%204%20egs%20solns0.ppt - Solutions Performance...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Solutions Performance Evaluation and Transfer Pricing Examples
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Example 1 (a) could be organised along either Functional or Business-unit lines each unit needs to be classified as a type of responsibility centre (cost, revenue, profit or investment) depending on what each manager can control (see next slides for two possible structures)
Background image of page 2
3 Functional Structure Corporate (Investment centre) Marketing Division (Revenue centre) Production Division (Cost centre) Line A: Luxury (Revenue centre) Line B: Upscale (Revenue centre) Line C: Mass-Market (Revenue centre) Line A: Luxury (Cost centre) Line B: Upscale (Cost centre) Line C: Mass-Market (Cost centre)
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Business-unit Structure Corporate (Investment centre) Division A:  Luxury (Profit centre) Division B:  Upscale (Profit centre) Division C:  Mass-Market (Profit centre) Marketing C (Revenue centre) Production C (Cost centre) Marketing B (Revenue centre) Production B (Cost centre) Marketing A (Revenue centre) Production A (Cost centre)
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 14

3.10 May%204%20egs%20solns0.ppt - Solutions Performance...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online