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Transfer pricing is a contentious issue for almost any company where divisions buy from or sell...

Transfer pricing is a contentious issue for almost any company where divisions buy from or sell to each other. Stated another way, transfer pricing causes more conflict between divisions than almost any other issue. Does your company use transfer pricing to "charge" divisions for the cost of the products they consume? Are these prices set equal to the opportunity cost of the product? Why or why not? Can you think of a better organizational architecture?

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