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| Topic: |
Business
|
| Number of pages / Number of words: |
5 / 1334 |
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Incorporating a mark up as established by Jacques is reasonable because there is a need to compensate the French region for the additional work incurred. Therefore, the transfer price is proposed to be 5,602,830 FrF instead of 6,803,000 FrF (Please see Appendix 1 for the detailed computation). It is also fair for the Spanish region to bear the expenses of sending people to France to assist in the packaging since this cost are incurred as a result of the additional production for the Spanish region...
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It is also fair for the Spanish region to bear the expenses of sending people to France to assist in the packaging since this cost are incurred as a result of the additional production for the Spanish region. To prevent future disputes on the transfer pricing, it is recommended that the central office established the transfer pricing computation methodology for transfer across the region...
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