Describe and evaluate the various approaches for setting transfer prices. How can the use of different approaches between the selling and buying divisions be reconciled?
You should choose examples from your own experience or find appropriate cases on the Web that you can discuss. Credit will be given for references you make to relevant examples from real companies.
Please find help and some guidelines related to transfer prices in attached file.
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This response provides guidance and references for various approaches of setting transfer prices. Further, it is also discussed how different approaches between the selling and buying divisions can be reconciled.