You must submit your initial response to the Discussion Question below by the end of day 3 (Saturday). A typical answer should have about 500 words, but it is the quality of the answer that matters, not the number of words. Satisfactory answers will demonstrate clear understanding of the topics and issues related to the DQ. Good answers will be able to explain the reasons in more depth. Excellent answers will be able to raise appropriate critical questions. Weak answers will demonstrate only a partial grasp of what is important in the context of the DQ.

Please submit your initial response through the Turnitin submission link below in addition to posting it to the Discussion Board thread. Do include all your references, as per the Harvard Referencing System, but do not include the question itself.

Discussion Question

In working out your responses to the Discussion Question, you should choose examples from your own experience or find appropriate cases on the Web that you can discuss. Credit will be given for references you make to relevant examples from real companies. 

Describe and evaluate the various approaches for setting transfer prices. How can the use of different approaches between the selling and buying divisions be reconciled?