Cost Allocation and Transfer Pricing at Unilever

Requirements:

1. Implement an appropriate cost allocation method to allocate indirect costs among Unilever's various product lines (e.g., beauty & personal care, foods & refreshments, home care).

Product Line	Direct Costs ($)	Indirect Costs ($)
Beauty & Personal Care	7,000,000	3,000,000
Foods & Refreshments	5,500,000	2,200,000
Home Care	6,500,000	2,600,000

2. Determine transfer pricing for internal transactions between Unilever's manufacturing and distribution divisions.
3. Evaluate the impact of different transfer pricing methods (e.g., market-based, cost-plus) on profitability.
4. Recommend a transfer pricing policy that aligns with corporate strategy and minimizes tax liabilities.