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transfer pricing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › transfer pricing

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  • July 6, 2017 at 8:46 am #394806
    adarsh1997
    Participant
    • Topics: 629
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    • ☆☆☆☆

    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.

    July 6, 2017 at 9:10 am #394818
    John Moffat
    Keymaster
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    • Replies: 51909
    • ☆☆☆☆☆

    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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