Discussion Post: Allocation of Costs Reflection
Transfer pricing between divisions in a decentralized organization can be a hot topic of conversation. Explain the issues that surround transfer pricing within organizations and give at least three examples of different options a firm may consider when trying to arrive at a fair transfer price for a product. List the pros and cons for the selling division as well as the purchasing division for each scenario presented.
The response must include a reference list. Using one-inch margins, double-space, Times New Roman 12 pnt font and APA style of writing and citations.