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Omicron- Exercise
Rosanas, Josep MariaExercise CE-18-EAccounting and ControlOmicron is an exercise in trasfer pricing intended to show how, when the two divisions are working below capacity, the only transfer price that induces goal congruence is the variable cost. Also, to contrast this result with the reasons (in terms of long-run opportunity costs) for including an allocation of fixed costs in the transfer price.Starting at €8.20
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Transit, Inc.- Exercise
Rosanas, Josep MariaExercise CE-17-EAccounting and ControlExercise on transfer pricing, where the two divisions involved have an opportunity cost of manufacturing alternative products. The exercise is intended to illustrate how a transfer pricing system can be a helpfuldevice for decentralized decision-making, providing incentives for making decisions that are in the best interest of tne company as a whole.Starting at €8.20