Logistics of transfer prices formation at the industrial enterprises
Journal Title: Економіка. Фінанси. Право - Year 2018, Vol 6, Issue
Abstract
The article is devoted to determining the content and essence of transfer prices as one of the functions of industrial logistics. Introduction: organizing of internal logistic system, expect the analyze of the nature of the production cycle, type of production, the system of supplying the main production and supplying material resources to the workplaces, the system of norms, Purpose: the main goal of transfer pricing is to maximize the company's total profit. Transfer prices are necessary for the organization of commercial settlement between the competing divisions of the firm. Results: the possibility of using the "Profit split method" system in relation to the workshop centers of costs in the case of the sequential processing of labor objects, adherence to the principle of proportionality between workshop stages of processing and single-name-production is considered. This type of analysis of the "cost-volume-profit" relationship is one of the most effective means of planning and forecasting the activities of an enterprise. Transfer prices for products transferred from the shop to the workshop can be determined either on the basis of only direct variable costs or on the basis of full cost accounting. The first approach corresponds to the basic principles and content of the "direct-costing" system; the second - provides correspondence with the definition of wholesale prices of the enterprise for marketable products, which corresponds to the currently accepted system of accounting for production units at domestic enterprises and the unity of methodological approaches to determining performance indicators of production departments and the enterprise as a whole It helps business leaders to identify the optimal proportions between variables and constant costs, price and volume of sales. Conclusion: the possibility of forming a logistics system for transfer pricing in the management of internal material flows of a production enterprise is considered. Logistical decisions in relation to a factor of pricing usually render direct influence on achievement by the enterprise of the strategic purposes put by a management from the conditions dictated by the competitive environment. Purposeful management of the "cost-price" mechanism, the rapid change in their ratio under changing business conditions will increase the potential for profit formation of the enterprise.
Authors and Affiliations
Asia Volodymyrivna Bohachova
Keywords
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