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Published in:
2015 | OriginalPaper | Chapter
3. Market-Based Transfer Prices
Author : Peter Schuster
Published in: Transfer Prices and Management Accounting
Publisher: Springer International Publishing
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Abstract
The market-based transfer price seems to be the natural option to support the idea of decentralised decision-making and is favoured by many textbooks. This books uses examples in perfect and imperfect market settings and explains reasons why other types of transfer prices are more likely to fulfill the desired functions, i.e. reliable profit allocations and figures on the one hand, and decisions in the best interest of the company as a whole on the other.