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Transfer Pricing at Amazon Values: Division A Cost: $90,000,000 Division B Revenue: $120,000,000 Transfer Price: $105,000,000 Requirements: Analyze the transfer pricing issue between Amazons divisions.
Transfer Pricing at Amazon
- Values:
- Division A Cost: $90,000,000
- Division B Revenue: $120,000,000
- Transfer Price: $105,000,000
- Requirements:
- Analyze the transfer pricing issue between Amazon’s divisions.
- Calculate the divisional profit under the transfer price.
- Discuss the challenges of transfer pricing in multinational corporations.
- Recommend strategies to optimize transfer pricing at Amazon.
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
3rd Edition
9780078025525, 9780077517359, 77517350, 978-0077398194
