1. Transfer pricing Chapter 21 ME 2027 Performance and Cost Analysis ME 2605 Cost Management and Control (for IMIM) Håkan Kullvén, KTH, 2007 Hakan.kullven@indek.kth.se

2. Why? 1.Information for managers decisions 2.For evaluating managers and divisions 3.To move profits 4.For divisional autonomy

3. How? Market-based Marginal cost Full cost Cost-plus Negotiated Dual-rate Combined fixed + variable Exhibit 21.2 page 889

4. Next, we… will focus on some important tools in order to manage the costs, mainly LCC, TC, KC, ABM, BPR, COQ, Value chain analysis, Benchmarking, Environmental costs, and JIT Chapter 22