Divisional Profitability

1 Posts
1 Sections
1 Types

Definitions

Transfer Pricing Divisional Profitability Managerial Economics Tax Optimization Multinational Corporations Transfer Pricing Methods Internal Transactions

Transfer prices refer to the costs at which goods and services are exchanged between divisions or subsidiaries within a conglomerate. They significantly influence the profitability of each division and can serve multiple strategic purposes including motivating managers, evaluating performance, maintaining autonomy, and moving profits.