Question
Implement a transfer pricing system at General Electric for inter-divisional sales of industrial components. Determine appropriate transfer prices for components sold between the manufacturing and
Implement a transfer pricing system at General Electric for inter-divisional sales of industrial components.
Determine appropriate transfer prices for components sold between the manufacturing and energy 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 the transfer pricing policy and its implications.
Components | Selling Division Price ($) | Buying Division Price ($) |
Industrial Components | $30,000,000 | $35,000,000 |
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