Ivey Publishing
Stone Group Corp. (Simplified Chinese version)
Product Number:
9B02BC01
Publication Date:
04/30/2002
Length:
9 pages (5 pages of text)
Product Type:
Case
Source:
Ivey
Stone Group Corp., one of the largest electronics manufacturers and distributors in China, practices transfer pricing, an allocation process that assigns costs, sales revenue and gross profits to each of its five divisions. When a customer approaches the company with an order and requests a recommendation for a multimeter model, the general manager of the Instruments Divsion is asked to quote a transfer price for the multimeters. He must decide whether to sell some of his stock to another Stone division (losing the sales revenue, but perhaps gaining the gross profit needed to meet the division's monthly profit quota) or to keep the product in stock for possible sales (and greater revenue and profit) during the company's fourth quarter.
Issues:
Disciplines:
Accounting,  International
Industries:
Manufacturing
Setting:
China, Large, 2001
Intended Audience:
MBA/Postgraduate
Price:
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download
Associated Materials
Use With: 9B02B001 (9 pages)
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