The Costing Formula Suitable for Pricing (Transfer Pricing) Decisions and Maximization of Business Value

Vhodný kalkulační vzorec s ohledem na rozhodování o ceně (transferové ceně) a maximalizaci hodnoty podniku

Tomas Buus

Český finanční a účetní časopis, 2009, vol. 2009, issue 2, 33-45

Abstract: This paper deals with different kinds of costing formulas, regarding the price-setting decisions, resp. transfer-pricing decisions and business value maximization. Results of theoretical research show that it is always suitable to separate fixed and variable costs, nevertheless retrograde costing formula is more convenient in competitive environment, whereas dynamic costing is more suitable in the case of monopoly. While reflecting the above, it is also necessary to take into account the multi-layer nature of product, including servicing and extraordinary requirements of customer (e.g. by using activity-based costing). The main determinant of success is not only the type of costing formula used, but also quality and detail of the data in information system.

Keywords: Costing; Transfer price; Cognition; Kalkulace; Transferová cena; Kognice (search for similar items in EconPapers)
JEL-codes: L11 M21 M40 (search for similar items in EconPapers)
Date: 2009
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DOI: 10.18267/j.cfuc.27

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