Transfer pricing in a case company MedTechnica 1
Olefirenko, Ekaterina (2013)
2013
Julkaisun pysyvä osoite on
http://urn.fi/URN:NBN:fi:amk-201305148328
http://urn.fi/URN:NBN:fi:amk-201305148328
Tiivistelmä
Due to companies’ internationalization processes, the trade of goods and services with-in organizations become a reality. As a result, questions about prices for internal cus-tomers have arisen. The price which one unit of a company charges for goods or ser-vices provided to another unit of the same company is called the transfer price. Cur-rently, the problem of transfer pricing is relevant for large enterprises as well as for medium size companies.
Over the years, this topic has been researched from the tax minimizing point of view. Bearing this in mind, the current study aims to investigate the topic from a managerial accounting point of view.
The theoretical framework of this thesis included three methods of transfer pricing, a discussion on the purpose of transfer prices and criteria for an evaluation of the trans-fer pricing system. The empirical part was implemented by means of qualitative research methods. Data collection was conducted through interviews and document analysis.
The research illustrated relevant phenomena by providing a case study. The case com-pany was a manufacturing company called MedTechnica 1. The case study focuses on the transfer pricing for the key products of the company. The purpose of this thesis was to apply different transfer pricing methods in the context of MedTechnica 1, and, based on analyses, make suggestions on possible changes in the transfer pricing system.
Over the years, this topic has been researched from the tax minimizing point of view. Bearing this in mind, the current study aims to investigate the topic from a managerial accounting point of view.
The theoretical framework of this thesis included three methods of transfer pricing, a discussion on the purpose of transfer prices and criteria for an evaluation of the trans-fer pricing system. The empirical part was implemented by means of qualitative research methods. Data collection was conducted through interviews and document analysis.
The research illustrated relevant phenomena by providing a case study. The case com-pany was a manufacturing company called MedTechnica 1. The case study focuses on the transfer pricing for the key products of the company. The purpose of this thesis was to apply different transfer pricing methods in the context of MedTechnica 1, and, based on analyses, make suggestions on possible changes in the transfer pricing system.