Transfer pricing

This topic has 1 reply, 2 voices, and was last updated 7 years ago by Ken Garrett.

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April 24, 2019 at 1:52 pm #514001
dsodha
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I understand that you can have a minimum and maximum transfer price. But can you have a transfer price in between where both divisions share the profit as well as the company benefitting as a whole?
April 24, 2019 at 5:55 pm #514015
Ken Garrett
Keymaster
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Yes, in fact that’s normal to keep both divisional managers happy. If you go outside the min/max, voluntary transfers will not take place.
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