To facilitate its strategic decision-making and internal transfer pricing, a major investment bank in the USA used ABC to determine which of its products and markets were profitable. ABC analysis made the bank aware that the undercharging had occurred between divisions and allowed the bank to make more accurate and efficient charges. The bank made significant changes in its internal transfer pricing which produced a dramatic improvement in internal performance....

BPIR Categories

2.1.8 Understand the internal environment/performance
1.2.1 Product strengths/weaknesses/opportunities/threats
11.3.2 Provide internal financial information

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