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Guidelines for Siemens Electric Motor Works: Pricing Interdivisional Sales Below are suggested questions for the case of Siemens Electric Motor Works. As usual, you
Guidelines for Siemens Electric Motor Works: Pricing Interdivisional Sales Below are suggested questions for the case of Siemens Electric Motor Works. As usual, you can skip any question that you think unimportant, and you are encouraged to address issues not listed below. 2. 3. Do you agree with Siemens's decision to set up both Sales and EMW as profit centers? What are some of the costs and benefits associated with this decision? Outline the transfer pricing rules. What is the relation between the cost of a product as generated by the product costing system, the factory cost, and its transfer price? If Herr Lottes asked for your analysis of his situation and a recommended course of action, how would you respond?
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