marginal-cost transfer prices

marginal-cost transfer prices
Transfer prices set by marginal cost pricing When there is no market for the goods and services that are bought and sold between the divisions of an organization, the transfer price should be the marginal cost, which is normally assumed to be short-term variable cost Setting transfer prices equal to marginal costs helps managers to identify the output levels that will maximize profits. There can be problems if managers do not have accurate cost information.

Big dictionary of business and management. 2014.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • maginal-cost transfer prices — Transfer prices set by marginal cost pricing. When there is no market for the goods and services that are bought and sold between the divisions of an organization, the transfer price should be the marginal cost, which is normally assumed to be… …   Accounting dictionary

  • transfer prices — The prices at which goods and services are bought and sold between divisions or subsidiaries within a group of companies. The transfer price is a cost to the receiving division and revenue to the supplying division: therefore the transfer price… …   Accounting dictionary

  • transfer prices — The prices at which goods and services are bought and sold between divisions or subsidiaries within a group of companies. The transfer price is a cost to the receiving division and revenue to the supplying division: therefore the transfer price… …   Big dictionary of business and management

  • dual-rate transfer prices — Transfer prices that are set at different levels for the supplying and receiving divisions of an organization. The dual prices method charges a low price, say a price based on the marginal cost, to the buying division, while at the same time… …   Accounting dictionary

  • dual-rate transfer prices — Transfer prices that are set at different levels for the supplying and receiving divisions of an organization. The dual prices method charges a low price, say a price based on the marginal cost, to the buying division, while at the same time… …   Big dictionary of business and management

  • Transfer pricing — refers to the pricing of contributions (assets, tangible and intangible, services, and funds) transferred within an organization. For example, goods from the production division may be sold to the marketing division, or goods from a parent… …   Wikipedia

  • Monopoly — This article is about the economic term. For the board game, see Monopoly (game). For other uses, see Monopoly (disambiguation). Competition law Basic concepts …   Wikipedia

  • Carbon tax — Part of a series on Green economics Concepts …   Wikipedia

  • Mergers and acquisitions — Merger redirects here. For other uses, see Merge (disambiguation). For other uses of acquisition , see Acquisition (disambiguation). Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis …   Wikipedia

  • Ontario electricity policy — refers to plans, legislation, incentives, guidelines, and policy processes put in place by the Government of the Province of Ontario, Canada, to address issues of electricity production, distribution, and consumption. Policymaking in the… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”