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Transfer pricing and what encourages managers in decisions

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Put simply, transfer pricing is a management tool for assigning a "price" to internally transferred goods in order to simulate the marketplace, thus encouraging mangers to make decisions that are in the best interest of the ?:
Manager.
Operating unit.
Firm.
Manager, in the short-run.
Unit in the short run and the firm in the long-run

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Solution Summary

An overall look at transfer pricing from a manager's point of view. Discussing the effects managers feel when trying to make decisions and who benefits most from those decisions.

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Put simply, transfer pricing is a management tool for assigning a "price" to internally transferred goods in order to simulate the marketplace, thus encouraging mangers to make decisions that are in the best interest of the ?:
Manager.
Operating unit.
Firm.
Manager, in the ...

Purchase this Solution
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