Learn to better understand transfer pricing and how important it is for decentralised entities that are organised as a group of divisions.
Learning Objectives
Assess the behavioural consequences of internal trading and transfer pricing decisions.;Interpret transfer pricing considerations for divisional and group profitability, including divisional autonomy.;Evaluate different scenarios around transfer pricing, including perfect, imperfect and no market for the intermediate good.;Interpret the impact of using different transfer pricing systems on the group and its divisions.
Major Topics
Transfer pricing and motivation of divisional managers;Transfer pricing considerations for divisional and group profitability;Transfer pricing in different markets;Transfer pricing methods and systems
