Mastering Transfer Pricing: Boosting Divisional Performance and Profitability

In this episode, we dive into the intricate world of transfer pricing and its vital role in enhancing divisional performance. Discover what transfer pricing is, why it matters, and how to set it effectively to foster motivation and alignment across divisions. We’ll discuss key considerations like cost structures, opportunity costs, and fairness, illustrated by a real-life case study from Alpha Group. Learn best practices to optimize resource allocation and maintain harmony within your organization, driving profitability and long-term goals.