Control Systems and Transfer Pricing - a discussion agenda

The following discussion agenda is on Control Systems and Transfer Pricing in the subject of Strategic Management Accounting (SMA):

1. A basic description of Management Control Systems (MCS)
2. How to evaluate management control systems
3. The consideration of organizational structure on MCS
• Costs and benefits of decentralization
4. The consideration of responsibility centres
5. The consideration of transfer pricing
• Alternative transfer-pricing methods:
• market-based transfer pricing
• cost-based transfer pricing
• negotiated transfer pricing
• A general guideline for transfer-pricing situations
• Minimum transfer price = additional incremental cost per unit up to the point of transfer + opportunity cost per unit to the supply division
• Related tax considerations

References

1. Bhimani, A., Horngre, C.T., Datar, S.M. and Rajan, M.V. (2012) "Chapter 18: Control systems and transfer pricing" Management and Cost Accounting, Prentice Hall.
2. On management control system: http://josephho33.blogspot.hk/2011/10/management-control-systems-brief-note.html
3. On transfer pricing: http://josephho33.blogspot.hk/2011/10/transfer-pricing-brief-note.html