When one division sells a good or service to another division within the same company, a transfer price must be established. This is critical because it affects the profitability of both units and, therefore, managerial bonuses.
Posts tagged as “Market Price”
An Inquiry into the Nature and Causes of the Wealth of Nations, universally known as The Wealth of Nations, is the foundational work of modern economics, written by Scottish economist and philosopher Adam Smith and published in 1776.
Wise investors know that a company's market price can be influenced by all sorts of things, from market sentiment to temporary news cycles. The real question is: Is the stock's price reflective of its actual worth?
True cost is an economic concept that includes the full environmental, social, and economic costs associated with a product or service throughout its entire lifecycle.
Alfred Marshall's model of perfect competition is a foundational concept in microeconomics that combines the theories of supply and demand to explain how prices and output are determined in a market.
The foreign exchange market, commonly referred to as Forex or FX, is widely regarded as the most voluminous and liquid financial market in the global economic system.
Imagine a market where only two firms, let's call them Firm 1 and Firm 2, are duking it out for dominance. How do they decide how much to produce, and what will the market look like as a result? This is the core question that the Cournot Duopoly Model, a foundational concept in microeconomics, seeks to answer.
Valuation is at the heart of many financial decisions. Whether you're buying or selling a company, assessing the worth of an investment, or determining whether a stock is under or overvalued, knowing how to properly value assets is crucial.