What question did this study set out to answer?

The aim is to evaluate the effectiveness of different transfer pricing methods in decentralized corporations.

Pricing Intracompany Transfers.

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Analysis of pricing effectiveness reveals challenges in income measurement for decentralized corporations, indicating complexities in operations.

The aim is to evaluate the effectiveness of different transfer pricing methods in decentralized corporations.
Assessment of various transfer pricing methods
Identification of significant reporting objectives
Analysis of the impact on income measurement
No single pricing method meets all needs of decentralized corporations
Inaccuracies in pricing methods are acknowledged and weighed against operational benefits
Greater significance in intradivisional transfers leads to more unreliable income measures

Harold Bierman (1959) studied this question.

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Analysis of pricing effectiveness reveals challenges in income measurement for decentralized corporations, indicating complexities in operations.