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accountability for transfer prices

This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.

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March 3, 2019 at 10:04 am #507264
elise520
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Hi. Just wondering, should divisional managers of investment centres be held accountable for the transfer prices of internally transferred products? Thanks!
March 3, 2019 at 5:15 pm #507295
John Moffat
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It depends on who is setting the transfer prices.
As I explain in my free lectures, they are very often fixed by senior management (not by the divisional managers) and if that is the case then divisional managers cannot be held accountable for them.
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