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Transfer Pricing

Transfer Pricing. Chapter 10 Managerial Accounting Concepts and Empirical Evidence. Engine United, Inc. Negotiated Transfer Price Illustration. Engine United, Inc. Negotiated Transfer Price Illustration. Engine United, Inc. Negotiated Transfer Price Illustration. Transferred Price.

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Transfer Pricing

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  1. TransferPricing Chapter 10 Managerial Accounting Concepts and Empirical Evidence

  2. Engine United, Inc.Negotiated Transfer Price Illustration Managerial Accounting Concepts and Empirical Evidence

  3. Engine United, Inc.Negotiated Transfer Price Illustration Managerial Accounting Concepts and Empirical Evidence

  4. Engine United, Inc.Negotiated Transfer Price Illustration Transferred Price $ 50,000 = (10,000* $5) 50,000 + (10,000* $35) = 400,000 Managerial Accounting Concepts and Empirical Evidence

  5. Engine United, Inc.Negotiated Transfer Price Illustration Managerial Accounting Concepts and Empirical Evidence

  6. Engine United, Inc.Negotiated Transfer Price Illustration Managerial Accounting Concepts and Empirical Evidence

  7. Engine United, Inc.Negotiated Transfer Price Illustration Managerial Accounting Concepts and Empirical Evidence

  8. Engine United, Inc.Negotiated Transfer Price Illustration 350,000 Subunit Variable Cost + (10,000 * 4) Cost of external purchase $ 10,000 Managerial Accounting Concepts and Empirical Evidence

  9. Engine United, Inc.Negotiated Transfer Price Illustration Managerial Accounting Concepts and Empirical Evidence

  10. Engine United, Inc.Negotiated Transfer Price Illustration Managerial Accounting Concepts and Empirical Evidence

  11. Dehy CompanyCost Based Transfer Price Illustration VC =$2* 1,000 units Rev = Sell P * units = $ 8* 1,000 = $ 8,000 Managerial Accounting Concepts and Empirical Evidence

  12. Dehy CompanyCost Based Transfer Price Illustration VC = $4 * 1,000 units TVC = $ 4,000 + $ 3,000 = $ 7,000 Buying subunit’s own VC Managerial Accounting Concepts and Empirical Evidence

  13. Dehy CompanyCost Based Transfer Price Illustration Selling subunit VC ($2,000)+ buying subunit VC ($4,000) Managerial Accounting Concepts and Empirical Evidence

  14. Dehy CompanyCost Based Transfer Price Illustration Managerial Accounting Concepts and Empirical Evidence

  15. Dehy CompanyCost Based Transfer Price Illustration Managerial Accounting Concepts and Empirical Evidence Note: all calculations are to be done using 2,000 units

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