This document discusses transfer pricing, which refers to the price at which divisions within a company transact with each other. It provides definitions of transfer pricing and outlines some key issues like how transfer prices impact revenue and influence whether managers prefer customers or suppliers that are internal or external to the company. The document then describes several methods that can be used to determine transfer prices, such as using market rates, negotiated prices, or cost-plus models. It provides an example of calculating an optimal transfer price between wood and paper divisions of a company. The summary concludes by noting how transfer prices can be manipulated for tax purposes in multinational companies.
Transfer Pricing
Objectives of Transfer Pricing
Methods of Transfer Pricing
Cost Based Transfer Pricing
Market Based Transfer Pricing
Negotiated Transfer Pricing
Advantages and Disadvantages
Transfer Pricing
Objectives of Transfer Pricing
Methods of Transfer Pricing
Cost Based Transfer Pricing
Market Based Transfer Pricing
Negotiated Transfer Pricing
Advantages and Disadvantages
Responsibility accounting is a system of dividing an organization into similar units, each of which is to be assigned particular responsibilities. These units may be in the form of divisions, segments, departments, branches, product lines and so on. Each department is comprised of individuals who are responsible for particular tasks or managerial functions. The managers of various departments should ensure that the people in their department are doing well to achieve the goal. Responsibility accounting refers to the various concepts and tools used by managerial accountants to measure the performance of people and departments in order to ensure that the achievement of the goals set by the top management.
Responsibility accounting, therefore, represents a method of measuring the performances of various divisions of an organization. The test to identify the division is that the operating performance is separately identifiable and measurable in some way that is of practical significance to the management. Responsibility accounting collects and reports planned and actual accounting information about the inputs and outputs of responsibility centers.
This ppt describe the Definition of TP with introduction to Transfer pricing and Objectives with types of TP addressed.
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The Concept
A stable strategy arises out of a basic perception by the management that the firm should concentrate on using its present resources for developing its competitive strength in particular market areas.
In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives
A firm pursues stability strategy when
1. It continues to serve the public in the same product or service, market, and function sectors as defined in its business definition.
2. Its main strategic decisions focus on incremental improvement of functional performance.
2. Corporate Restructuring is the process of redesigning one or more aspects of a company.
3. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a currently adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction.
Cost Accounting-
-Meaning of Cost Accounting
-Scope of Cost Accounting
-Nature of Cost Accounting
-Relationship b/w Financial Accounting & Cost Accounting
-Cost Accounting v/s Management Accounting
-Objectives of cost accounting
-Function of cost accountant
-Essentials of cost accounting
-Advantages of cost accounting
-Limitations of cost accounting
-Role of cost in cost accounting
-Cost Unit & Cost Centre
-Cost Techniques
-Costing Systems
-Costing Methods
-Cost Classification
-Components of total cost
-Cost Sheet.
This PPT contains the full detail of topic leverage in financial management
it covers following topics :-
Meaning of Leverage
Types of Leverage
Operating Leverage
Financial Leverage
Difference between Operating & Financial Leverage
Combined Leverage
Illustrations
Exercise
11th Cairo Marketing Club (Pricing Strategies) by Dr.Ahmed Hany 31-3-2018Mahmoud Bahgat
11th Cairo Marketing Club (Pricing Strategies) by Dr.Ahmed Hany 31-3-2018
*#Mahmoud_Bahgat*
*#Marketing_Club*
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Responsibility accounting is a system of dividing an organization into similar units, each of which is to be assigned particular responsibilities. These units may be in the form of divisions, segments, departments, branches, product lines and so on. Each department is comprised of individuals who are responsible for particular tasks or managerial functions. The managers of various departments should ensure that the people in their department are doing well to achieve the goal. Responsibility accounting refers to the various concepts and tools used by managerial accountants to measure the performance of people and departments in order to ensure that the achievement of the goals set by the top management.
Responsibility accounting, therefore, represents a method of measuring the performances of various divisions of an organization. The test to identify the division is that the operating performance is separately identifiable and measurable in some way that is of practical significance to the management. Responsibility accounting collects and reports planned and actual accounting information about the inputs and outputs of responsibility centers.
This ppt describe the Definition of TP with introduction to Transfer pricing and Objectives with types of TP addressed.
Subscribe to Vision Academy YouTube Channel
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
The Concept
A stable strategy arises out of a basic perception by the management that the firm should concentrate on using its present resources for developing its competitive strength in particular market areas.
In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives
A firm pursues stability strategy when
1. It continues to serve the public in the same product or service, market, and function sectors as defined in its business definition.
2. Its main strategic decisions focus on incremental improvement of functional performance.
2. Corporate Restructuring is the process of redesigning one or more aspects of a company.
3. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a currently adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction.
Cost Accounting-
-Meaning of Cost Accounting
-Scope of Cost Accounting
-Nature of Cost Accounting
-Relationship b/w Financial Accounting & Cost Accounting
-Cost Accounting v/s Management Accounting
-Objectives of cost accounting
-Function of cost accountant
-Essentials of cost accounting
-Advantages of cost accounting
-Limitations of cost accounting
-Role of cost in cost accounting
-Cost Unit & Cost Centre
-Cost Techniques
-Costing Systems
-Costing Methods
-Cost Classification
-Components of total cost
-Cost Sheet.
This PPT contains the full detail of topic leverage in financial management
it covers following topics :-
Meaning of Leverage
Types of Leverage
Operating Leverage
Financial Leverage
Difference between Operating & Financial Leverage
Combined Leverage
Illustrations
Exercise
11th Cairo Marketing Club (Pricing Strategies) by Dr.Ahmed Hany 31-3-2018Mahmoud Bahgat
11th Cairo Marketing Club (Pricing Strategies) by Dr.Ahmed Hany 31-3-2018
*#Mahmoud_Bahgat*
*#Marketing_Club*
للاشتراك في نادي التسويق بالشرق الاوسط
*If you are a Marketer now*
To Join our whatsapp &Monthly Meeting in Middle East Cities
Send me ur data on Whatsap
00966569654916
*Fill ur data here as speaker or member*
https://lnkd.in/efkTE7T
Join now
*Marketing Club Facebook Page*
https://lnkd.in/gm4c4hD
*Marketing Club Facebook Group*
https://lnkd.in/gX-5au5
*Egyptian Pharmacists Society Facebook Page*
https://lnkd.in/fucnv_5
•••••••••••••••••••••••••••••
*#Mahmoud_Bahgat*
00966568654916
لخدمات التسويق والدعاية والاعلان
*#Legendary_ADLAND*
Complete Marketing Solutions
*www.TheLegendary.info*
•••••••••••••••••••••••••••••
للحصول على اقامة او شركة في اوروبا
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Europe Companies & Residency
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*Contact Bahgat*
M.Bahgat@TheLegendary.Info
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
2. INTRODUCTION–TRANSFER PRICE
The price at which divisions of a company
transact with each other. Transactions may
includes the trade of supplies or labour
between departments. Transfer prices are
used when Individual entities of a larger multi
entry firm are treated and measured as
separately run entities.
3. DEFINITION-TRANSFER PRICING
Transfer pricing is the setting of the price for
goods and services sold between related
legal entities with an enterprise.
E.g.: If a Subsidiary Company sells goods to
a parent company , the cost of those goods
is the transfer price.
5. Revenue Basis : The Manager of a subsidiary
treats its same manner that he would price of a
product sold outside of the company. It forms part of
the revenue of his subsidiary, and is therefore
crucial to the financial performance on which he is
judged .
Preferred Customers : If the Manager of a
subsidiary is given the choice of selling either to a
downstream subsidiary or to outside customers,
then an excessively low transfer price will lead the
manager to sell exclusively to outside customers,
and to refuse orders originating from the
downstream subsidiary.
6. Preferred Suppliers : If the manager of
a downstream subsidiary is given the choice of
buying either from an upstream subsidiary or an
outside supplier, then an excessively high transfer
price will cause the manager to buy exclusively from
outside suppliers. As a result, the upstream
subsidiary may have too much unused capacity, and
will have to cut back on its expenses in order to
remain profitable.
7. METHODS – TRANSFER PRICING
Market Rate
Adjusted Market
rate
Negotiated
Contribution
Margin
Cost – Plus
Cost Based
8. Market Rate Transfer pricing : The simplest
and most elegant transfer price is to use the market
price. By doing so, the upstream subsidiary can sell
either internally or externally and earn the same profit
with either option. It can also earn the highest possible
profit, rather than being subject to the odd profit vagaries
that can occur under mandated pricing schemes.
Adjusted Market Rate Transfer Pricing : If
it is not possible to use the market pricing technique just
noted, then consider using the general concept, but
incorporating some adjustments to the price. For
example, you can reduce the market price to account for
the presumed absence of bad debts, since corporate
management will likely intervene and force a payment if
there is a risk of non-payment
9. Negotiated Transfer Pricing : It may be
necessary to negotiate a transfer price between subsidiaries,
without using any market price as a baseline. This situation
arises when there is no discernible market price because the
market is very small or the goods are highly customized. This
results in prices that are based on the relative negotiating
skills of the parties.
Contribution margin Transfer Pricing : If there
is no market price at all from which to derive a transfer price,
then an alternative is to create a price based on a
component’s contribution Margin.
10. Cost plus Transfer Pricing: If there is no market
price at all on which to base a transfer price, you could
consider using a system that creates a transfer price based
on the cost of the components being transferred. The best
way to do this is to add a margin onto the cost, where you
compile the standard cost of a component, add a standard
profit margin, and use the result as the transfer price.
Cost Based Transfer Pricing : You can have each
subsidiary transfer its products to other subsidiaries at cost,
after which successive subsidiaries add their costs to the
product. This means that the final subsidiary that sells the
completed goods to a third party will recognize the entire
profit associated with the product.
11. EXAMPLES – TRANSFER PRICING
Prachi Papers
Wood Division Paper Division
Trees Paper
Wood for
making paper
12. PRACHI PAPERS
COST AND PRODUCTION DATA
Average units produced
Average units sold
Variable manufacturing cost per unit
Variable finishing cost per unit
Fixed divisional cost (unavoidable)
100,000
$ 20
$2,000,000
100,000
$ 30
$4,000,000
13. Prachi Papers – Resources Flow
Wood Division
(selling division)
Variable cost = $20
Fixed cost = $2,000,000
Paper Division
(buying division)
Variable wood cost = ?
Variable finishing cost = $30
Fixed cost = $4,000,000
Wood
Transfer
price
Market for wood
(intermediate market
Price = ?
Market for paper
(final market
Price = ?
THE SETTING
14. • Assume the following data for the wood division:
Capacity in units
Selling price to outside
Variable price per unit
Fixed price per unit (based on capacity)
100,000
$ 60
$ 20
$ 20
• The Paper Division is currently purchasing 100,000
units from an outside supplier for $50, but would
like to purchase units from the Wood Division.
16. OPTIMAL TRANSFER PRICE
• There is no intermediate market.
• In this case, the only outlet for the Wood Division
is the Paper Division and the only source of
supply for the Paper Division is the Wood Division.
• The optimal transfer price is the outlay cost for
producing the goods (generally the variable costs).
17. PERFECT INTERMEDIATE
MARKED-QUALITY DIFFERENCES
Variable manufacturing cost (Wood Division) per unit
Variable finishing cost (Paper Division) per unit
Other data:
Final market (paper) price
Intermediate market (grade A wood) price
Intermediate market (grade B wood) price
$ 20
$ 30
$120
$ 60
$ 50
18. MANAGERS’ GOALS VERSUS FIRMS’ GOALS
• Transfer price lower than market:
Selling division will not sell
• Transfer price higher than market:
Buying division will not buy
19. MULTINATIONAL TRANSFER PRICING
• International (or interstate) transfer pricing
can affect tax liabilities, royalties, and other
payments due to different laws in different
countries or states.
• Company incentive:
– Increase profit in low-tax country
– Decrease profit in high-tax country
Suppose Prachi Papers has two divisions, the Wood Division that processes
trees and sells wood and the Paper Division that buys wood for manufacturing paper.
Identify the behavioral issues and incentive effect of negotiated transfer prices, cost-based transfer prices, and market-based transfer prices.