Towards an organizational theory of the transfer pricing process

  • Barry H. Spicer


Understanding the transfer pricing issue as it arises in large decentralized firms is important, because it represents a pervasive problem in the design of managerial accounting and control systems in complex organizations. This paper draws on the growing literature on the economics of internal organization to develop an understanding of the strategic, organizational and transactional conditions under which transfer pricing (and related control) issues arise, and the organizational processes used to implement intra-firm transfers of products and to determine transfer prices. The objective of the paper is to develop a theory of the transfer pricing process and to deduce hypotheses from the theory.


Organizational Theory Transfer Price Divisional Manager Quantifiable Cost Internal Transfer 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer Science+Business Media Dordrecht 1988

Authors and Affiliations

  • Barry H. Spicer
    • 1
  1. 1.University of OregonUSA

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