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transfer pricing

Ddarsh19979y ago
Hi John! I do have watched your lectures on transfer pricing but still has some doubt about the general concept. Does the company decide on the transfer price or the divisions individually decide on the transfer price or the divisions collectively decide on the transfer price? Thanks.
John MoffatJohn MoffatTutor9y ago#1
There is no rule as to who fixes the transfer price. However in order to be certain of goal congruent decisions, then whoever is fixing it must make sure it is a 'sensible' transfer price using the 'rules' that I go through in the lectures.
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