Cost Allocation and Transfer Pricing at Nissan

Requirements:

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

Supply Chain Segment	Allocation Basis	Transfer Price ($)
Europe	Production Volume	90,000
Middle East	Fixed Cost	80,000

• Implement cost allocation methods to allocate overhead costs across Nissan's supply chain segments in Europe and the Middle East.
• Determine transfer pricing mechanisms for intercompany transactions between Nissan's manufacturing divisions and regional subsidiaries.
• Recommend Nissan's transfer pricing policies to optimize tax efficiency and profitability across its global supply chain operations.