Answer
No, I don't agree. Transfer pricing is not limited to profit centers. While it is commonly associated with profit centers, it also applies to cost centers and investment centers within an organization. Transfer pricing methods are used to determine the prices at which goods, services, or assets are transferred between these various organizational units. Ensuring appropriate transfer pricing is essential for cost allocation, performance evaluation, and maintaining transparency within the organization, not only in profit centers but across different types of centers.
Work Step by Step
No, I don't agree. Transfer pricing is not limited to profit centers. While it is commonly associated with profit centers, it also applies to cost centers and investment centers within an organization. Transfer pricing methods are used to determine the prices at which goods, services, or assets are transferred between these various organizational units. Ensuring appropriate transfer pricing is essential for cost allocation, performance evaluation, and maintaining transparency within the organization, not only in profit centers but across different types of centers.
