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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1564 |
Essay's paper body
The transfer pricing system for Birch Paper Company is dysfunctional since it is possible for each internal division to price their product above the going market price. This ability for individual price setting deters the divisions from making purchases internally and negotiating, although in the long run the company benefits from choosing, either internally or externally, the option with the lowest cost to the firm...
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This ability for individual price setting deters the divisions from making purchases internally and negotiating, although in the long run the company benefits from choosing, either internally or externally, the option with the lowest cost to the firm. The Southern division is currently using a market-based transfer price approach...
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