Siemens Electric Motor Works (B): Pricing Interdivisional Sales Harvard Case Solution & Analysis

Examines policy Siemens "for pricing of products transferred between production and sale of units of Electric Works Motor, where both are profit centers. It is unique in that the organizational relationship between the value of the product and transfer pricing system will be highlighted. Issues raised center around the behavior induced by the system Transfer pricing in combination with each manager's incentive to increase the division of profits. addition, students will have the opportunity to discuss the feasibility of a system of transfer pricing and the structure of the profit center organization. "Hide
by Karen H. Wruck Source: Harvard Business School 10 pages. Publication Date: October 20, 1988. Prod. #: 189090-PDF-ENG

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Siemens Electric Motor Works (B): Pricing Interdivisional Sales

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