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Chapter 9

Overview

Problems Structuring

associated divisions as
with divisional responsibility

structures centres ROI RI

DIVISIONAL
PERFORMANCE

APPRAISAL AND

TRANSFER PRICING

Comparison Value-based Transfer

of ROI and RI management pricing
(VBM)

 What is VBM?  General rules for setting

 Measures used in VBM transfer prices

 Implementing VBM  Alternative transfer
 VBM evaluation pricing methods
 International transfer
pricing

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