Question
TallTree2 Hotel Casino Case Study - relating to transfer pricing. https://www.imanet.org/-/media/46a804961a424d0b8ab56a5774e524a7.ashx I don't know how to calculate transfer pricing. Other than rooms, what do I
TallTree2 Hotel Casino Case Study - relating to transfer pricing. https://www.imanet.org/-/media/46a804961a424d0b8ab56a5774e524a7.ashx
I don't know how to calculate transfer pricing. Other than rooms, what do I need to transfer - food? What else? And to what profit centers: Casino, Rooms (Hotel), Restaurant?
The question is" Assume that you decided you should treat each (Casino, Hotel, Restaurant) as a profit center. Discuss various transfer prices you would use for rooms and food given the situation with "comps". Identify the advantages and disadvantages to each transfer price and recommend which you would select."
I assume when it says each transfer price, it means the methods of internal transfers at market price, cost-based internal transfers, and hybrid price.
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