Criteria Of A Good Intra Transfer Pricing System(Part2)

In Part 1,we have looked at what’s transfer price and some of the rationales for having or to implement such intra transfer pricing.

This article deals with some of the following criteria that a company should have in mind when implementing the intra transfer pricing system:

• the transfer pricing system should able to encourage goal congruence;
• motivate the managers of both the selling and buying centres;
• permit realistic performance appraisal;
• assist the managers of responsibility centres to make the correct decisions and
• last but not least preserve the autonomy of responsibility centre managers.

• Reasons For Implementing Intra Group Transfer Pricing(Part1)
• What Is An Effective Transfer Pricing System In A Divisional Organization
• TRANSFER PRICING IS AN IMPENDING MAJOR TAX CHALLENGE FOR COMPANIES ESPECIALLY MULTINATIONALS
• Full Cost Plus Pricing Methodology(Part2)
• Transfer Pricing System:Core Documentation File (Part A)
• Drafting/Formulating Management Services As Part of Management Fee/Transfer Pricing Strategy
• Transfer Pricing Systems:Methods &Selection(Part C)