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AC303 - AUTUMN 2008

Essex Business School. Recommended Articles . Adler, R. W. (1996), ?Transfer Pricing for World-Class Manufacturing", Long Range Planning, Vol. 29, No. 1, pp. 69-75.Borkowski, S. C. (1997), ?Factors Motivating Transfer Pricing Choices of Japanese and United States Trans-national Corporations", Journ

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AC303 - AUTUMN 2008

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    1. Essex Business School AC303 - AUTUMN 2008/09 ADVANCED MANAGEMENT ACCOUNTING Lecture (9) Divisionalised Organisations and Transfer Pricing I

    2. Essex Business School Recommended Articles Adler, R. W. (1996), “Transfer Pricing for World-Class Manufacturing”, Long Range Planning, Vol. 29, No. 1, pp. 69-75. Borkowski, S. C. (1997), “Factors Motivating Transfer Pricing Choices of Japanese and United States Trans-national Corporations”, Journal of International Accounting, Auditing & Taxation, Vol. 6, No. 1, pp. 25-47.

    3. Essex Business School Today’s Lecture Last Topic –Divisionalised Organisations and Transfer Pricing Today: Divisionalised organisations and transfer prices How does transfer pricing affect business profitability? Explain some basic concepts of transfer pricing. Next Week: Transfer pricing issues: Resolving TP’s conflicts. Domestic and International transfer pricing

    4. Essex Business School Divisionalised organisations Organisational structure Centralised: stable environment Decentralised: changing environment

    5. Essex Business School Divisionalised organisations Decentralisation devolution of authority to make decisions Divisionalisation Decentralisation plus delegated profit responsibility Allows diversification with strategic direction & control Shareholder value is the criterion for overall business success, but divisional performance is the criterion for divisional success Improving and maintaining divisional performance Managerial responsibility, linked to rewards

    6. Essex Business School

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