Goal congruence through transfer pricing system
- 2005
- p.302-05.
- Apr
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.