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Transfer pricing plays an essential role in determining the actual price of a product. Students are often given assignments on such topics. But without proper knowledge on the technicalities of the subject matter it can indeed be difficult to craft a well-written assignment.

Responsibility Accounting and Transfer Pricing assignment help by the experienced Sydney based assignment writers of BookMyEssay deals with responsibility accounting, where an individual is given the control of a department and his or her actions will determine the functioning of the enterprise and he or she will be solely responsible if the benchmark is not achieved. It also sheds light on the procedure and effects of transfer pricing.

What is Responsibility Accounting?

Responsibility accounting is a procedure of supervision where the responsibility is assigned for the control of costs. Certain individuals are made accountable for the control of costs.

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The concerned person is empowered with authority so that he or she can keep up their performances. If the performance of the appointed person is not up to the anticipated criterion then the concerned person will be responsible for it. In the case of responsibility accounting, the emphasis is put on the performance of the men rather than on the system.

Responsibility Accounting and Transfer Pricing assignment help online assists the students to understand the topic with a relevant example. For instance, X, the manager of a department, readies the cost budget of his department. X will be accountable for maintaining the budget under control. X will be provided with the entire data of costs incurred by his department. In case, the cost is somehow more than the budgeted cost, X will have to find out justifications and take essential countercheck measures. X will be personally reliable for the performance of the department.

What are the Key Features of Responsibility Accounting?

An analysis of the above definition reveals the following features of responsibility accounting:

Costs and Revenues: The execution and maintenance of the responsibility accounting system are established upon the data related to inputs and outputs. The manual resources utilized in an organisation such as quality of raw materials, hours of labour consumed and so on are mentioned as inputs. In monetary language, these inputs are termed as costs. Similarly, the outputs conveyed in economic terms are called revenues. Thus, the responsibility accounting is based on information related to cost and revenue.

Use of Budget: The effective enactment of responsibility accounting demands both planned and actual financial information. Responsibility accounting not only required the knowledge of the previous cost and revenue data but also required a planned budget for the future functioning of the department. The budget for the implementing plans is communicated to different levels of management.

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What is Transfer Pricing?

Before discussing the precise details of the subject, Responsibility Accounting and Transfer Pricing homework help service, BookMyEssay provided a comprehensive definition of the topic. Transfer pricing can be defined as the value affixed to goods and services switched between similar parties. Transfer pricing, in other words, is the price that has to be paid for goods and services shifted from one unit of an organisation to its other units in different countries.

What are the Key Objectives Behind Transfer Pricing?

The fundamental objectives behind transfer pricing are as follows:

  • Transfer of prices will not only affect the reported earnings of every centre but will also affect the overall allotment of a company’s reserves.
  • Transfer pricing helps in yielding dividend for each of the divisions and facilitate the evaluation of performances of each division individually.

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