Professional Documents
Culture Documents
PRICING
Group No.5
Alka IB(02)
Saurabh Ramdasi IB(60)
Mayuresh Wagh IB (59)
Sampada Oak IB (32)
Ritesh IB (62)
Ruchi Singh IB (51)
Case Study
Tangible Property
Intangible Property
Controlled Services
Financing Arrangement
Indian Scenario
Fundamental Principle
Transfer
Pricing
Methods
Market price.
Competitive price.
Cost based.
Negotiation
Constraints on Sourcing
Limited Markets
Existence
of Internal capacity
Sole producer of differentiated products
Significant investment in facilities
Transfer Price->Competitive Price
Excess or Shortage of Industry Capacity
The Cost basis :The usual basis is standard costs .Actual costs
should not be used to avoid production inefficiencies
Two-Step Pricing
$11
PRICING
CORPORATE
SERVICES
2 types of transfers:
NEGOTIATION
AND
ARBITRATION
IN TRANSFER
PRICING
Negotiation In Transfer
Pricing
Negotiation In Transfer
Pricing
They can buy from, or sell to, outside party if the deal
offered is better than one by other business unit
In case of a tie, Business unit must keep the business inside
Class I :
Class II :
TRENDS IN
TRANSFER PRICING
Contd
Contd