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Implement a transfer pricing system at Ford for inter-divisional sales of automotive parts. Automotive Parts Selling Division Price ($) Buying Division Price ($) Engine Components
Implement a transfer pricing system at Ford for inter-divisional sales of automotive parts.
Automotive Parts | Selling Division Price ($) | Buying Division Price ($) |
Engine Components | 40,000,000 | 45,000,000 |
Requirements:
Determine appropriate transfer prices for parts sold between manufacturing and assembly divisions.
Calculate the impact on divisional and overall company profitability.
Recommend strategies to ensure fair pricing and maintain divisional autonomy.
Prepare a detailed report on transfer pricing policy and implications.
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