Transfer_Pricing_notes - b. Cost-Based Variable Cost Full...

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Transfer Pricing – the price charged when one division (buying division) buys from another division (selling division) within the same company. 1. Impact on Division vs. Impact on Company as a whole Concept of Goal Congruency 2. Transfer Pricing Policies a. Market Price Are products exactly alike?
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Unformatted text preview: b. Cost-Based Variable Cost Full Cost What does it mean? Full Cost + markup c. Negotiated Minimum for Selling Division variable cost (what if operating at capacity?) Maximum for Buying Division market price...
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This note was uploaded on 10/20/2011 for the course ACC 222 taught by Professor Brewer during the Spring '08 term at Miami University.

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