It's 2024 and your video is still being watched! I'm in my second semester of Cost Accounting and I don't know how I'd have made it without finding you!
Hey Boss, in that tx price consideration, which I've experienced as intercompany work order or inside sales, what is the typical practice related to profit/fee and how is it applied to that intercompany cost? I've seen it handled both ways: one company was not permitted to apply fee to intercompany cost per contractual obligations and the other company applied fee like it was the wild west. Let me know as your time permits and thank you again for your diligent work.
Haha - truthfully I don't have much practical experience with this one. My understanding is international co's will abuse this for tax advantage. (Lots of US-based tech companies used transfer pricing schemes to route profits through Ireland to the Caribbean in order to reduce their tax burden - I'm not sure it's still the case, but the move was so prevalent that it has a wikipedia page: en.wikipedia.org/wiki/Double_Irish_arrangement )
I made it through the end and was sad that it ended! haha How would going for the Variable Cost option make sense? Would it make more sense the Full Cost option because you are charging the fixed cost as well (you are breaking even at least!)
The idea here is that you already have a business up and running, so you are covering your fixed costs with your existing business. Ignore them (they are not relevant to this decision as they aren't different whether or not we do the transfer). That's the theory anyway, in practice firms do all sorts of funny things!
Just dropping a comment to show you you're helping people from around the globe in cementing their accounting concepts. Very well explained video.
Not many people show up in my managerial accounting class, and I can see why (they have found your YT channel). You are doing a great job! Thanks
It's 2024 and your video is still being watched! I'm in my second semester of Cost Accounting and I don't know how I'd have made it without finding you!
I made it! Thank you so much for creating all these videos and resources - they really are invaluable and I'm so grateful.
It was long but soo helpful.. You 're a savior Tony, tq
This video makes transfer pricing so easy to understand ❤
Thank y ou for explaining transfer pricing. Yes, I made it to the end.
Thank you, happy to say I made it to the end of the video and I now have a much better understanding :)
Tony, your videos are amazing! Thanks for all your help
Thank you. I made it to the end and this video was very helpful actually.
Thank you for your explanation, it helps me a lot 👍🏻👍🏻
I made it to the end. First class
Well explained, thank you
amazing video sir
Brilliant thank you!!
Thank you so much Tony~
made it to the end!!
you just so good in business, i wish i can be like you hhhhhhhhhh
I m ade it to the end!
Thank you so much!
1 liter is about 34 ounces. Great video.
Thanks Tony I made it to the end!
thank you Tony! made it to the end :)
Is this who I think it is?
Yes! Haha was finally able to subscribe to your channel, scored A+ for 3250 and big thanks to you!
you are an angel!
Lol. I made it. Thank you very much Mr. Bell.
Made it to the End!
Thanks a lot
Hey Boss, in that tx price consideration, which I've experienced as intercompany work order or inside sales, what is the typical practice related to profit/fee and how is it applied to that intercompany cost? I've seen it handled both ways: one company was not permitted to apply fee to intercompany cost per contractual obligations and the other company applied fee like it was the wild west. Let me know as your time permits and thank you again for your diligent work.
Haha - truthfully I don't have much practical experience with this one. My understanding is international co's will abuse this for tax advantage. (Lots of US-based tech companies used transfer pricing schemes to route profits through Ireland to the Caribbean in order to reduce their tax burden - I'm not sure it's still the case, but the move was so prevalent that it has a wikipedia page: en.wikipedia.org/wiki/Double_Irish_arrangement )
I made it through the end and was sad that it ended! haha How would going for the Variable Cost option make sense?
Would it make more sense the Full Cost option because you are charging the fixed cost as well (you are breaking even at least!)
The idea here is that you already have a business up and running, so you are covering your fixed costs with your existing business. Ignore them (they are not relevant to this decision as they aren't different whether or not we do the transfer). That's the theory anyway, in practice firms do all sorts of funny things!
top PRO ever
Screw bagel bites! LOL!
Thankyou so much your accounting series are literally life savers 🫶