Transfer Pricing Effects on Locally Measured Organizations
Cox, James F, Howe, W Gerry, Boyd, Lynn H, Industrial Management
Why is transfer pricing an important issue? Many large firms move parts, components, assemblies, and finished products among plants and divisions continuously. They also use plant and division profit and loss statements as local performance measurements, and encourage each plant or division to make procurement and sales decisions at the local level. Recently some companies have given all plants and divisions the authority to purchase and sell outside their company if a better price exists, even though several of these same companies are their-own biggest customers. This is a major problem with farreaching implications that impact the very existence of the company. What is the real result …
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Publication information: Article title: Transfer Pricing Effects on Locally Measured Organizations. Contributors: Cox, James F - Author, Howe, W Gerry - Author, Boyd, Lynn H - Author. Magazine title: Industrial Management. Volume: 39. Issue: 2 Publication date: March/April 1997. Page number: 20+. © 1999 Institute of Industrial Engineers, Inc. (IIE). Provided by ProQuest LLC. All Rights Reserved.
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