February 22, 2010
Lead Generation Services
Secondly, there can be no profit center unit has only internal customers. This immediately leads to the fundamental differences between the purposes of division and the company as a whole Lead Generation Services. In such a situation unit will not seek to reduce their costs and increase profit at the expense of their comrades, which leads to an increase in total expenses of the company. This applies to the use of transfer pricing within the company, for example, in order to create profit centers based on the production or support personnel. In the absence of market mechanisms adjust transfer prices may mask the inefficiency of such units. If the unit operates mainly in the foreign market, it is objectively a profit center and the use of transfer prices for domestic consumers is justified.
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