Transfer prices are of dominant importance in company practice and a decentralised organisation
e.g. a profit centre-organisation is most-widely used. This textbook takes an innovative
controversial approach by looking at functions of transfer prices and how different types of
transfer prices can fulfil them. Suggestions common in other textbooks will be picked up and it
will be shown why they do not contribute to solve the problems companies face. With support of
numerous examples and exercises a conceptual understanding of this most relevant management
topic will be developed. Transfer prices are an issue in most advanced courses on Management
Accounting and or Management Control and their analysis receives increasing attention. They are
covered in one chapter in almost all management accounting textbooks. This often leads to
serious oversimplifications and reductions of contents. This books aims at filling this gap and
to provide a concise and controversial view on the topic.
