Question
TechGroup Russia has two divisions: Division A, which produces components, and Division B, which assembles the final product using these components. Division A can sell
"TechGroup Russia" has two divisions: Division A, which produces components, and Division B, which assembles the final product using these components. Division A can sell the components to external customers for 200 rubles each. However, Division B can purchase them from external suppliers for 180 rubles each. Ask students to evaluate the transfer price decision, considering the impact on the overall profitability of TechGroup Russia. Encourage them to propose a transfer price that aligns with the company's goals and objectives.
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