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Cost Management in Supply Chains pp 147–163Cite as

Transfer Pricing in Supply Chains: An Exercise in Internal Marketing and Cost Management

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Summary

Supply chains are, in many industries, dominated by non-market activities in the form of infra-firm trade, often between geographically dispersed subsidiaries of multinational companies. Internal supplier (transferor) — customer (transferee) relationships are governed by internal decisions with transfer prices as the pivotal element. The study of the intra-firm portion of supply chain relationships is a necessity for a proper understanding of cost management throughout the entire supply chain. Transfer prices have usually been driven by subsidiary performance evaluation and international tax consideration, which only seeks a redistribution of accounting income. The actions of the business units involved in internal transactions can affect costs, profits, cash flows,.final product customers and competitive position. Practical suggestions are made to ensure that intra _firm trade and transfer pricing are geared towards value creation for all parties.

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Authors
  1. Messaoud Mehafdi
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Editors and Affiliations

  1. Institute of Business Administration, Faculty for Business, Economics and Law Uhlhornsweg, University of Oldenburg, 26129, Oldenburg, Germany

    Stefan Seuring  & Maria Goldbach  & 

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© 2002 Springer-Verlag Berlin Heidelberg

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Mehafdi, M. (2002). Transfer Pricing in Supply Chains: An Exercise in Internal Marketing and Cost Management. In: Seuring, S., Goldbach, M. (eds) Cost Management in Supply Chains. Physica, Heidelberg. https://doi.org/10.1007/978-3-662-11377-6_9

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  • DOI: https://doi.org/10.1007/978-3-662-11377-6_9

  • Publisher Name: Physica, Heidelberg

  • Print ISBN: 978-3-7908-2515-2

  • Online ISBN: 978-3-662-11377-6

  • eBook Packages: Springer Book Archive

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