The Static Theory of Transfer Pricing
DEPARTMENT OF THE INTERIOR WASHINGTON DC
Pagination or Media Count:
An analysis of the literature of transfer pricing is presented. It is shown that, under assumptions that the firm and its divisions have full deterministic knowledge of their costs and demands, some form of average cost is the appropriate transfer price. What happens when a firm adopts an objective other than profit maximization is further examined.
- Administration and Management
- Economics and Cost Analysis