Transfer pricing is a business tool used by many companies. This enables companies to keep profits high, no matter what the economy is doing. The objectives of transfer pricing are, therefore, keeping the profit margin high by over charging or under charging on goods and services. Usually this is done when a company has a brances in multiple companies. For instance, Wal-Mart has merchandise made in China for very low cost, then it is brough to America where it is sold at higher cost. This enables the company to reap large profits.
TP is a method of selling purchaging among the two or more divisions of an large organisation.
waht is transfer pricing
The pricing of goods or services at such a low level that other suppliers cannot compete and are forced to leave the market.
The advantage of full cost plus pricing is the higher return on investment. The disadvantage of full cost-plus pricing is lower demand for the products.
production and pricing aspects
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transfer pricing is in the case of transferred with in the organisation the pricing of contribution for assets ,
transfer pricing is in the case of transferred with in the organisation the pricing of contribution for assets ,
what are the nature of transfer
transfer pricing is in the case of transferred with in the organisation the pricing of contribution for assets ,
what is premium pricing strategy
what is premium pricing strategy
advantages and disadvantages of transfer function?
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multinational corporations
Lars Nieckels has written: 'Transfer pricing in multinational firms' -- subject(s): Heuristic programming, International business enterprises, Mathematical models, Transfer pricing
The advantages of technology transfer is that China can mass produce United States nuclear apparatus and sell it back for cheaper prices. The main disadvantage is there are compromises to US security.