Question
Implement a transfer pricing system at Google for inter-divisional sales of software components. Determine appropriate transfer prices for components sold between the development and marketing
Implement a transfer pricing system at Google for inter-divisional sales of software components.
Determine appropriate transfer prices for components sold between the development and marketing 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.
Software Components | Selling Division Price ($) | Buying Division Price ($) |
Development Components | $60,000,000 | $65,000,000 |
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