C/ACC501 Accounting For Decision Making
Module 3 Case
TRANSFER PRICING AND RESPONSIBILITY CENTERS
Coffee Maker’s Incorporated (CMI)
Three divisions of a CMI are involved in a dispute. Division A purchases Part 101 and Division B purchases Part 201 from a third division, C. Both divisions need the parts for products that they assemble. The inter company transactions have remained constant for several years.
Recently, outside suppliers have lowered their prices, but Division C refuses to do so. In addition, all division managers are feeling the pressure to increase profit. Managers of divisions A and B would like the flexibility to purchase the parts they need from external parties at a lower cost and increase profitability.
The current pattern is that
The managers for divisions A and B are preparing a new proposal for consideration.
Each submission should include two files: (1) An Excel file and (2) a Word document. The Word document shows the memo first and short essay last. Assume a knowledgeable business audience and use required format and length. Individuals in business are busy and want information presented in an organized and concise manner.
PLEASE SEE ATTACHED FILES FOR COMPLETE ASSIGNMENT DETAILS