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The transfer price should be equal to the variable costs of the goods or services, plus the contribution margin per unit that is lost.
=variable costs+(selling price-variable costs)
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What do you mean by transfer pricing?
transfer pricing is in the case of transferred with in the organisation the pricing of contribution for assets ,
What is conversion cost pricing?
Pricing is based on direct labor and overhead. Materials does not affect pricing. Example: Your customer provides materials used in production.
What is contribution margin pricing?
Contribution margin pricing means to follow the contribution margin costing process to allocate price to units or production units.
Why is penetration pricing more likely than skim pricing to raise a company's or a business unit's operating profit in the long run?
The penetration pricing is more likely to raise the business unit's operating profit in the long run because it does not spend heavily on promotion.
What is unrelaized profit?
Unrealized profit is that portion of profit which is not yet earned. In transfer pricing normally what happens that products after finishing transfers to other departments with profit charged but if those goods not sell to end user until that time that profit cannot be counted as profit which is called unrealized profit.
What do you mean by transfer pricing?
transfer pricing is in the case of transferred with in the organisation the pricing of contribution for assets ,
What do you mean by transfer?
transfer pricing is in the case of transferred with in the organisation the pricing of contribution for assets ,
What is the nature of transfer pricing?
what are the nature of transfer
What do you mean by pricing?
transfer pricing is in the case of transferred with in the organisation the pricing of contribution for assets ,
What is the meaning of funds transfer pricing?
tranfor price
The concept of transfer pricing involves the role of?
multinational corporations
How can you calculate a current stock pricing?
use a calculator!
What has the author Lars Nieckels written?
Lars Nieckels has written: 'Transfer pricing in multinational firms' -- subject(s): Heuristic programming, International business enterprises, Mathematical models, Transfer pricing
What has the author Kimberly A Clausing written?
Kimberly A. Clausing has written: 'The impact of transfer pricing on intrafirm trade' -- subject(s): American Corporations, Corporations, American, Econometric models, Intra-firm trade, Taxation, Transfer pricing
What has the author R Turner written?
R. Turner has written: 'Study on transfer pricing'
What has the author Robert Feinschreiber written?
Robert Feinschreiber has written: 'Transfer Pricing Handbook, 1995 Cumulative Supplement 1' 'Trnsfer Pricing Handbook, 1998 Supplement No. 1' 'Earnings and Profits' 'Tax incentives for U.S. exports' -- subject(s): Export sales contracts, Foreign income, Income tax, Law and legislation, Tax incentives, Taxation 'Tax Reporting for Foreign-Owned U.S. Corporations 1995' 'Transfer Pricing Handbook' 'Transfer Pricing Handbook' 'Transfer pricing handbook' -- subject(s): Taxation, Transfer pricing, Law and legislation, Business enterprises, Consolidation and merger of corporations, Finance, Purchasing, History and criticism, African American authors, Violence in literature, Lynching in literature, African Americans in popular culture, American literature 'Allocation and apportionment of deductions' -- subject(s): Deductions, International business enterprises, Taxation
Intersegment transfer pricing policy?
Transfer pricing refers to the pricing of contributions (assets, tangible and intangible, services, and funds) transferred within an organization. For example, goods from the production division may be sold to the marketing division, or goods from a parent company may be sold to a foreign subsidiary. Since the prices are set within an organisation (i.e., controlled), the typical market mechanisms that establish prices for such transactions between third parties may not apply. The choice of the transfer price will affect the allocation of the total profit among the parts of the company. This is a major concern for fiscal authorities who worry that multi-national entities may set transfer prices on cross-border transactions to reduce taxable profits in their jurisdiction. This has led to the rise of transfer pricing regulations and enforcement, making transfer pricing a major tax compliance issue for multi-national companies.
