In this multimedia case Bruce Wood of ARCP addresses an interesting problem. The firm has an ownership structure based on two operating companies. Those two operating companies are an asphalt manufacturer and a road construction company. The asphalt manufacturer produces the asphalt and sells it to the road construction company. The challenge is a transfer pricing issue, trying to ensure that the price charged from the manufacturing company to the road construction company is fair to all of the owners, making sure that one company does not receive too much profit and the other company does not carry an excess of expense. What needs to be determined is the price the manufacturing company should be selling asphalt to the road construction company for. Visit casenet.ca for more free, open access decision focused video teaching cases from Acadia University.
25 to 500
Greater than $25 million
Type of Entity
Level of Difficulty
Learn about asphalt and road construction industry
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