Which method of transfer pricing considered when the supplier division is a monopoly producer?

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journal article

Transfer Pricing for Divisional Autonomy

Journal of Accounting Research

Vol. 8, No. 1 (Spring, 1970)

, pp. 99-112 (14 pages)

Published By: Wiley

https://doi.org/10.2307/2674715

https://www.jstor.org/stable/2674715

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The Journal of Accounting Research publishes original research using analytical, empirical, experimental, and field study methods in accounting research. The journal had been published since 1963 by the Accounting Research Center (ARC) at the University of Chicago Booth School of Business. Beginning in 2001, the Journal of Accounting Research has been published by the ARC in partnership with Blackwell Publishing. JSTOR provides a digital archive of the print version of Journal of Accounting Research. The electronic version of Journal of Accounting Research is available at http://www.interscience.wiley.com. Authorized users may be able to access the full text articles at this site.

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journal article

On the Economics of Transfer Pricing

The Journal of Business

Vol. 29, No. 3 (Jul., 1956)

, pp. 172-184 (13 pages)

Published By: The University of Chicago Press

https://www.jstor.org/stable/2350664

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The Journal of Business ceased publication with the November 2006 issue (Volume 79, Number 6). Founded in 1928, The Journal of Business was the first scholarly journal to focus on business-related research and played a pioneering role in fostering serious academic research about business. However, in appreciation of the increasing specialization in business scholarship, as reflected in the emergence of many specialized business journals, the faculty of the University of Chicago's Graduate School of Business decided after careful deliberation and extensive dialogue to cease publication of the more broadly focused Journal at the end of 2006, after nearly eight decades of publication by the University of Chicago Press. 

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Since its origins in 1890 as one of the three main divisions of the University of Chicago, The University of Chicago Press has embraced as its mission the obligation to disseminate scholarship of the highest standard and to publish serious works that promote education, foster public understanding, and enrich cultural life. Today, the Journals Division publishes more than 70 journals and hardcover serials, in a wide range of academic disciplines, including the social sciences, the humanities, education, the biological and medical sciences, and the physical sciences.

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Which method of transfer pricing considered when the supply division is a monopoly producer?

Opportunity Cost Such pricing may also be required where the supplier division is a monopoly producer or the user division is a monopoly consumer. The transfer price may be fixed at a level which equal the opportunity cost of the supplier division and the user division.

What are the methods of transfer pricing?

Here are five widely used transfer pricing methods your business should consider..
Comparable Uncontrolled Price. ... .
Cost-Plus. ... .
Resale-Minus. ... .
Transactional Net Margin (TNMM) ... .
Profit Split..

What are the three types of transfer pricing?

Generally, companies can determine transfer prices three different ways: market-based transfer prices, cost- based transfer prices, and negotiated transfer prices.

Which pricing method is useful when the selling division is operating below capacity?

Variable cost-based pricing approach is useful when the selling division is operating below capacity. The manager of the selling division will generally not like this transfer price because it yields no profit to that division. In this pricing system, only variable production costs are transferred.