Transfer Pricing Based on Actual Cost

2003 ◽  
Vol 15 (1) ◽  
pp. 177-192 ◽  
Author(s):  
Savita A. Sahay
Keyword(s):  
Production Cost ◽  
Transfer Pricing ◽  
Transfer Price ◽  
Actual Cost ◽  
Pricing Policy ◽  
Unit Production Cost ◽  
Entire Class ◽  
Cost Of Production ◽  
The Cost

This paper analyzes a simple transfer-pricing policy based on the actual cost of production. I show that the performance of actual cost-based transfer pricing can be improved by using an additive markup above the unit production cost. I also show that this additive policy dominates an entire class of alternative markup policies, including the more common multiplicative policy, in which the transfer price is set at the actual cost plus a percentage markup. The optimal additive markup is shown to increase with increasing prices for the firm's product, and decrease with the cost of the supplying division's investment.

ANALYSIS OF THE METHODS OF FORMATION OF THE TRANSFER PRICE AND THE POSSIBILITY OF ITS IMPLEMENTATION IN THE PERFORMANCE OF BUSINESS ENTITIES

2021 ◽  
Vol 4 (7) ◽  
pp. 20-27
Author(s):  
Risolat Khasanova ◽  
Keyword(s):  
Transfer Pricing ◽  
Transfer Price ◽  
Cost Of Production ◽  
Business Entities ◽  
The Cost ◽  
Practical Recommendations

The article examines the experience of transfer pricing in world practice. In particular, the option of using an alternative transfer pricing scenario was considered. It was determined the need to include the profits of each division in the calculation sheet of the cost of production as a separate item. The possibilities of introducing this experience into the process of forming transfer pricing of enterprises operating in the form of clusters and cooperatives are analyzed. As a result of the study, conclusions were formed, scientific proposals and practical recommendations were given on this problem.

IMPLEMENTASI JOB ORDER COSTING METHOD DALAM PERHITUNGAN HARGA POKOK PRODUKSI MAP

2018 ◽  
Vol 4 (2) ◽  
pp. 43-55
Author(s):  
Ika Yulianti ◽  
Endah Masrunik ◽  
Anam Miftakhul Huda ◽  
Diana Elvianita
Keyword(s):  
Production Process ◽  
Quantitative Data ◽  
Production Cost ◽  
Qualitative Data ◽  
Cost Data ◽  
Method Calculation ◽  
Cost Of Production ◽  
The Right ◽  
The Cost

This study aims to find a comparison of the calculation of the cost of goods manufactured in the CV. Mitra Setia Blitar uses the company's method and uses the Job Order Costing (JOC) method. The method used in this study is quantitative. The types of data used are quantitative and qualitative. Quantitative data is in the form of map production cost data while qualitative data is in the form of information about map production process. The result of calculating the cost of production of the map between the two methods results in a difference of Rp. 306. Calculation using the company method is more expensive than using the Job Order Costing method. Calculation of cost of goods manufactured using the company method is Rp. 2,205,000, - or Rp. 2,205, - each unit. While using the Job Order Costing (JOC) method is Rp. 1,899,000, - or Rp 1,899, - each unit. So that the right method used in calculating the cost of production is the Job Order Costing (JOC) method

scholarly journals Aplikasi Metode Simpleks Pada Optimalisasi Biaya Bahan Baku (Studi Kasus: Ukm Najmah Klappertart)

2020 ◽  
Vol 17 (2) ◽  
pp. 129-140
Author(s):  
D Damayanti ◽  
A I Jaya ◽  
Resnawati
Keyword(s):  
Simplex Method ◽  
Production Cost ◽  
Production Costs ◽  
Optimal Production ◽  
Total Cost ◽  
Optimal Cost ◽  
Cost Of Production ◽  
The Cost

ABSTRACT The purpose of this research is to obtain an the optimal production costs of Klappertart based on the basic ingredients comparing the production cost of Klappertart in Najmah Klappertart with production costs using the simplex method. The result showed that the optimal costs is ,-. This result is equal to the total cost of klappertart by SMEs Najmah Klappertart, so it can be concluded that the cost of production klappertart based on the basic ingredients on SMEs Najmah Klappertart were optimal. Keywords      : Optimal Cost, Basic Ingredients, Production Costs. (A-Z), Simplex Method  

scholarly journals Analisis Penentuan Beban Pokok Produksi Pada Usaha Tempe Sumber Mas Jember

2018 ◽  
Vol 5 (2) ◽  
pp. 134
Author(s):  
Luqman Arif Baihaqi ◽  
Imam Mas'ud ◽  
Yosefa Sayekti
Keyword(s):  
Control System ◽  
Production Process ◽  
Production Cost ◽  
Cost Control ◽  
Total Production ◽  
Cost Of Production ◽  
The Cost ◽  
Business Cost

This study aims to find out the system of business cost control of Tempe Sumber Mas. A Controling based difference between the calculation of the cost of production with cost of production of tempe using full costing. and This research uses Descriptive by Source and Technique Triangulation. The results of this study indicate that the cost control system used by the company is still simple and the calculation of the cost of production of tempe using full costing method is greater than calculate the total production cost used in the tempe production process. Keywords: Expense, Cost of Production, Full Costing, Cost Control

scholarly journals Financial stability management as a determinant of competitive development of agrarian formations

2019 ◽  
pp. 13-18
Author(s):  
Nadiia HRYSHCHUK
Keyword(s):  
Financial Stability ◽  
Production Cost ◽  
New Technology ◽  
Fixed Costs ◽  
Qualitative Characteristic ◽  
Agricultural Enterprises ◽  
Cost Of Production ◽  
Labor Resources ◽  
The Cost

The article investigates financial stability as a qualitative characteristic of functioning of agricultural enterprises in modern conditions, the analysis of indicators of financial stability of the enterprise and determination of its type, as well as the effectiveness of forecasting the financial stability of agricultural enterprises. A number of measures is proposed, which is to reduce the cost of production (cost-saving strategy), which will allow agribusinesses to increase competitiveness in the market due to the introduction of new technology, technologies, more rational the use of both material and labor resources, reducing the proportion of fixed costs in the cost of production, in proportion to the increase in profits and competitive development of agricultural enterprises. The basic condition for ensuring the financial stability of the company is the formation of sufficient amounts of funds that enable them to fully fulfill their obligations to the budget, pay employees, creditors, suppliers.

scholarly journals CALCULATION OF PRODUCTION COST IN UD. USAHA BARU WITH FULL COSTING METHOD

2019 ◽  
Vol 4 (1) ◽  
pp. 28-42
Author(s):  
Suprianto Suprianto ◽  
Bina Andari ◽  
Yely Sulistyawati
Keyword(s):  
Production Cost ◽  
Raw Materials ◽  
Analysis Data ◽  
Production Costs ◽  
Raw Material ◽  
Labor Costs ◽  
Material Costs ◽  
Other Information ◽  
Cost Of Production ◽  
The Cost

This study aims to evaluate the calculation of cost of production. The accuracy of the calculation of cost of production is influenced by the suitability in the accumulation and calculation of production costs which includes the cost of raw materials, direct labor costs and other costs (factory overhead costs). This research was conducted at UKM UD. Usaha Baru which aims to determine the calculation of cost of production at UD. Usaha Baru and to find out whether the calculation of cost of production is in accordance with the full costing method. The technique (method) of data analysis used in this study is quantitative analysis. Data collection techniques use interview techniques directly to obtain information from the number of units of monthly production, raw material costs, direct labor costs, and factory overhead costs, as well as other information relating to the calculation of cost of production. Based on the evaluation results for the calculation of raw material costs and labor costs are in accordance with the full costing method. However, the calculation of factory overhead costs is not in accordance with the full costing method because there are costs that have not been included in the calculation of production costs.

scholarly journals A Feasibility Study of Cellulosic Isobutanol Production—Process Simulation and Economic Analysis

Processes ◽  
2019 ◽  
Vol 7 (10) ◽  
pp. 667 ◽  
Author(s):  
Avraam Roussos ◽  
Nikiforos Misailidis ◽  
Alexandros Koulouris ◽  
Francesco Zimbardi ◽  
Demetri Petrides
Keyword(s):  
Energy Demand ◽  
Production Cost ◽  
Fossil Fuels ◽  
Raw Materials ◽  
Downstream Processing ◽  
Economic Feasibility ◽  
Unit Production Cost ◽  
Product Titer ◽  
Product Removal ◽  
The Cost

Renewable liquid biofuels for transportation have recently attracted enormous global attention due to their potential to provide a sustainable alternative to fossil fuels. In recent years, the attention has shifted from first-generation bioethanol to the production of higher molecular weight alcohols, such as biobutanol, from cellulosic feedstocks. The economic feasibility of such processes depends on several parameters such as the cost of raw materials, the fermentation performance and the energy demand for the pretreatment of biomass and downstream processing. In this work, two conceptual process scenarios for isobutanol production, one with and one without integrated product removal from the fermentor by vacuum stripping, were developed and evaluated using SuperPro Designer®. In agreement with previous publications, it was concluded that the fermentation titer is a crucial parameter for the economic competitiveness of the process as it is closely related to the energy requirements for product purification. In the first scenario where the product titer was 22 g/L, the energy demand for downstream processing was 15.8 MJ/L isobutanol and the unit production cost of isobutanol was $2.24/L. The integrated product removal by vacuum stripping implemented in the second scenario was assumed to improve the isobutanol titer to 50 g/L. In this case, the energy demand for the product removal (electricity) and downstream processing were 1.8 MJ/L isobutanol and 10 MJ/L isobutanol, respectively, and the unit production cost was reduced to $1.42/L. The uncertainty associated with the choice of modeling and economic parameters was investigated by Monte Carlo simulation sensitivity analysis.

scholarly journals Constraint and opportunity of raw jute production : A case study of eastern Terai, Nepal

2013 ◽  
Vol 3 ◽  
pp. 117-122 ◽  
Author(s):  
TB Ghimire ◽  
NS Thakur
Keyword(s):  
Production Cost ◽  
Cost Effective ◽  
Profit Margin ◽  
Yield Potential ◽  
High Yield ◽  
Climate Change Effect ◽  
Cost Of Production ◽  
Sowing Period ◽  
The Cost ◽  
High Yield Potential

Area and production of raw jute has decreased, though there is a high demand of raw jute in the country. In order to assess production constraints, a survey was carried out in 2005/06 in Jhapa, Morang and Sunsari districts. The study revealed that unstable or low price of raw jute, unavailability of quality jute seed, limited irrigation water at sowing period, diseases complex (wilt), labor shortage during peak season, weed problem, lack of retting water/retting pond were the main constraints in jute production and processing. The study indicates that the maximum production cost has involved in fiber extraction (16.9%) and weeding (16.33%). Jute productivity ranged from 1788 to 2260 kg per hectare. JRO-524 variety of jute has been widely grown across the region due to its wider adaptability, high yield potential and quality fiber. Jute area has been replaced by sugarcane due to its high yield potential and high profit margin. It is observed that the cost of production of jute is high as compared to other crops in the season. Average cost of production of fiber was estimated to be Rs.1563/quintal. For the promotion of jute cultivation in the eastern Terai, it would be better to provide subsidies on seeds and fertilizer to jute growers as practiced in neighboring countries thereby profit margin becomes high and will encourage growers in producing more raw jute within the country for the fulfillment of raw jute requirement of local jute industries. Cost effective technologies have to be developed in jute production and processing aspects for lowering the production cost and increasing the profit margin. Popular genotypes JRO- 524 which was widely adopted needs to be recommended officially for the general cultivation in this region. Being an eco-friendly crop, promotion is required to adapt climate change effect and maintaining the soil properties in jute growing areas. Agronomy Journal of Nepal (Agron JN) Vol. 3. 2013, Page 117-122 DOI: http://dx.doi.org/10.3126/ajn.v3i0.9013

scholarly journals Analisis Perhitungan Dan Penentuan Harga Pokok Produksi Pada PT. Mutifa Medan

2019 ◽  
Vol 2 (1) ◽  
pp. 12
Author(s):  
John Fisher Gulo ◽  
Kamil Mustafa ◽  
Ninny Siregar
Keyword(s):  
Production Cost ◽  
Raw Materials ◽  
Descriptive Analysis ◽  
Production Costs ◽  
Total Production ◽  
Labor Costs ◽  
Average Production ◽  
Qualitative Descriptive ◽  
Cost Of Production ◽  
The Cost

<p>The cost of production is needed to determine the cost of production of a product. Costs incurred to produce the product must be clear, so that the determination of the cost of production would be appropriate. Imprecision in calculating the cost of production will be misleading in making management decisions. Data collection methods used in this study include: Documentation, Interview, Observation. This study analyzed using qualitative descriptive analysis comparing the theory with actual results of the company. PT MUTIFA in determining the cost of production using the full costing method. PT MUTIFA in determining the cost of production, all costs incurred are treated as production costs, both the cost of major raw materials, cost of auxiliary materials, packaging materials costs and production overhead. Classification of production costs in accordance with the theory that exists is composed of material costs, labor costs and production overhead costs. Total production cost per month of each element calculation the average monthly cost is Rp. 73.111.118,260,- and the average number of finished products Paracetamol tablet 500 mg tablet is as much 566,666.67 per month. Based on data on average production costs in 2009, then the production cost per tablet is .Rp. 129,019.</p>

scholarly journals Rekontruksi Perhitungan Harga Pokok Produksi pada UMKM Eraclassic

2018 ◽  
Vol 5 (1) ◽  
pp. 64
Author(s):  
B. Bariro ◽  
Aisa Tri Agustini
Keyword(s):  
Quantitative Method ◽  
Labor Cost ◽  
Manufacturing Cost ◽  
Actual Cost ◽  
Overhead Cost ◽  
Equipment Manufacturer ◽  
Qualitative And Quantitative ◽  
Cost Of Production ◽  
Utility Cost ◽  
The Cost

The objective of this research is to reconstruct manufacturing cost of bag in UMKM Eraclassic located in Gresik Regency, using job order costing method. Data in this research are collected through observation, interviews, and documentaries. Descriptive qualitative and quantitative method will be used to analyze those data. The results shows that there is a differences between the calculation of manufacturing cost by UMKM Eraclassic and calculation using job order costing method. The result of reconstruction calculation shows that sling bag, fungky bag and duffel bag manufacture cost are Rp 22.680, Rp 30.189, and Rp 41.707 per unit. This results shows that the gross profit accepted by UMKM Eraclassic are Rp 1.972 per dozen, which is too low. Based on those result, UMKM Eraclassic needs to take the manufacturing overhead cost elements, the cost of depreciation of buildings and vehicles and equipment manufacturer into accounts. In addition, based on the existing fee policy on UMKM Eraclasic, direct labor cost and utility cost will be charged to products. Based on job order costing method, direct labor cost should be charged based on the actual cost of the case, while utility expense which is the manufacturing overhead costs will be charged by the rate determined upfront based on basic imposition. Keywords: Manufacturing Cost, Job Order Costing, Cost of Production, Gross Profit

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