Cost Allocation and Transfer Pricing at Kia Motors

Requirements:

1. Develop a cost allocation and transfer pricing strategy for Kia Motors' global subsidiaries.

Subsidiary	Allocation Basis	Transfer Price ($)
South Korea	ABC	50,000
Europe	Fixed Cost	60,000

• Implement cost allocation methods to allocate overhead costs across Kia Motors' production facilities in South Korea and Europe.
• Determine transfer pricing mechanisms for intercompany transactions between Kia Motors' manufacturing divisions and sales subsidiaries.
• Recommend Kia Motors' transfer pricing policies to optimize tax efficiency and profitability across its global operations.