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Involves transfer charges between a few divisions of the organization. The corporate’s higher management is lacking a transfer pricing policy that enables goal congruence amongst the divisions.
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However, this tactic, which or else really should be driving profitability, is now exhibiting an In general drop in profits as per the monetary effects. The flagship goods’ margins also appear to be dipping, which compelled us to critique the earnings assertion from an action-based mostly lens.
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