File Name: responsibility accounting and transfer pricing test bank .zip
Which of the following is not considered in the calculation of divisional ROI?
Setting intercompany pricing policies is challenging but achievable for most organizations. OTP is the management of transfer pricing data, processes and governance using technology. An effective OTP program aligns transfer pricing requirements with commercial goals, thereby promoting compliance, reducing complexity, delivering strategic insights and driving better business decisions. In this article, we explore why OTP is now attracting renewed attention. We also dispel some common misconceptions about OTP and highlight its potential benefits. Historically, multinational organizations upgraded their finance systems by investing in enterprise resource planning ERP systems. But these investments tended to focus on managing the business overall, rather than specific legal entities, and the alignment of the commercial, finance and tax functions were often not considered.
Once the goals are developed, goals must be communicated throughout the organization and activities of the organization should align to achieve the strategic goals. Centralized organizations reserve decision-making authority for top management. Decentralized organizations disperse decision-making throughout the organization. Companies of all sizes may exhibit tendencies for both centralized and decentralized decision-making. For example, while Apple might give its stores great latitude to meet customer needs, the company will reserve research and development activities for the highest levels of the organization. Daily decisions are frequent and usually have a short-term impact.
ACCOUNTING AND. TRANSFER PRICING Responsibility Accounting Systems. An accounting system Transactions processed (banks). © The McGraw-Hill.
Full description Recommend Documents. Transfer Pricing Module 7-b tp-mas-testbank.
Many companies are divided into departments when they become too large to be effectively managed as single units. This division into departments is often needed so that the responsibilities for the activities of a unit do not overwhelm the manager s ability to oversee and control them effectively. Also, departments can be organized to take advantage of the specialized skills of each manager. Operating departments are directly involved in manufacturing or selling the products or services of a business. Service departments support operating departments through activities such as accounting, payroll, and legal services.
testbank for Ex04 Responsibility Accounting & Transfer Pricing. Compiled version Description. MANAGERIAL ACCOUNTING 1. Segment.