How many ways are there for setting a transfer price that is most likely to result in goal congruent behavior?
All of these approaches are used to set a transfer price:
1) Cost-plus transfer pricing
2) Opportunity cost
3) Market price
4) Sensible transfer pricing
Are those all approaches used in the PM exam?
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Transfer Pricing
4y ago#1Everything that is needed for the exam in transfer pricing is explained in my free lectures on this.
The only method that ensures goal congruent behaviour is what you have called 'sensible transfer pricing' for the reasons I explain in my lectures.
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