Week 6 Discussion- Account for Managment Decision Making

Account For Management Decision Making

Week 6 Learning Resources

Transfer Pricing

Many companies today have multiple divisions located in various countries around the globe. For example, Division A might make shoelaces that it sells to retail outlets, but Division B might make shoes and need laces for those shoes. Division A is able to sell laces to Division B. The question is what price should Division A sell the laces to Division B? This exchange between divisions of the same company is called transfer pricing, which you will explore further in these resources.

· Franklin, M., Graybeal, P., & Cooper, D. (2019).  Why it mattersLinks to an external site. . In  Principles of accounting, volume 2: Managerial accounting . OpenStax. https://openstax.org/books/principles-managerial-accounting/pages/9-why-it-matters

· Franklin, M., Graybeal, P., & Cooper, D. (2019).  9.1 differentiate between centralized and decentralized managementLinks to an external site. . In  Principles of accounting, volume 2: Managerial accounting . OpenStax. https://openstax.org/books/principles-managerial-accounting/pages/9-1-differentiate-between-centralized-and-decentralized-management

· Franklin, M., Graybeal, P., & Cooper, D. (2019).  9.2 describe how decision making differs between centralized and decentralized environmentsLinks to an external site. . In  Principles of accounting, volume 2: Managerial accounting . OpenStax. https://openstax.org/books/principles-managerial-accounting/pages/9-2-describe-how-decision-making-differs-between-centralized-and-decentralized-environments

· Franklin, M., Graybeal, P., & Cooper, D. (2019).  9.4 describe the effects of various decisions on performance evaluation of responsibility centersLinks to an external site. . In  Principles of accounting, volume 2: Managerial accounting . OpenStax. https://openstax.org/books/principles-managerial-accounting/pages/9-4-describe-the-effects-of-various-decisions-on-performance-evaluation-of-responsibility-centers

· Plante & Moran. (2018, May 3).   The perils of basing management decisions on the transfer priceLinks to an external site. . https://www.plantemoran.com/explore-our-thinking/insight/2018/05/the-perils-of-basing-management-decisions-on-the-transfer-price

· Sprague, C.  (2021).  Tax impact on decisionsLinks to an external site. . In  Salem Press Encyclopedia.

· Walden University, LLC. (2021).  How to calculate transfer pricing    Download How to calculate transfer pricing [PDF].Walden University Canvas. https://waldenu.instructure.com

· Walden University, LLC. (2021).  Transfer-pricing methods [Video]. Walden University Canvas. https://waldenu.instructure.com

· Walden University, LLC. (2021).  Transfer pricing    Download Transfer pricing [PDF]. Walden University Blackboard. https://waldenu.instructure.com