Cost Allocation and Transfer Pricing at Infiniti

Requirements:

1. Develop a cost allocation and transfer pricing strategy for Infiniti's global supply chain operations.

Supply Chain Segment	Allocation Basis	Transfer Price ($)
Asia-Pacific Region	Production Volume	80,000
North America	Fixed Cost	70,000

• Implement cost allocation methods to allocate overhead costs across Infiniti's supply chain segments in Asia-Pacific and North America.
• Determine transfer pricing mechanisms for intercompany transactions between Infiniti's manufacturing divisions and regional subsidiaries.
• Recommend Infiniti's transfer pricing policies to optimize tax efficiency and profitability across its global supply chain operations.