Goal congruence through transfer pricing system
By: Basu, P.C.
Material type:
ArticlePublisher: 2005Description: p.302-05.Subject(s): Organizations
In:
Management AccountantSummary: Goal conflicts and sub optimal decisions resulting in lower profit and profitability are more often observed in multi-divisional organisations with interdependency for buying and selling of in-house intermediates. This paper examines various facets of the issue, recommendations of scholars and accounting institutions about the role and effectiveness of Transfer Pricing System as a gool for resolving conflicts and removing sub-optimality in the process of profit optimization. It has brought out the state of affairs in Indian industries based on empirical study. - Reproduced.
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Articles
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Indian Institute of Public Administration | Volume no: 40, Issue no: 4 | Available | AR65217 |
Goal conflicts and sub optimal decisions resulting in lower profit and profitability are more often observed in multi-divisional organisations with interdependency for buying and selling of in-house intermediates. This paper examines various facets of the issue, recommendations of scholars and accounting institutions about the role and effectiveness of Transfer Pricing System as a gool for resolving conflicts and removing sub-optimality in the process of profit optimization. It has brought out the state of affairs in Indian industries based on empirical study. - Reproduced.
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