150-200 words for question 3explain why it may not be desirable for amcor head office management to dictate transfer prices for its overseas strategic business units

"no vodafone AU 4G 09:23 @ TO 85%@ H La Trobe University lifestyles and sustainability with the brand of the customers who purchase our packaging for their products. For this we utilise powerful computer aided design and rapid prototyping before we embark on real production". He continued: "Our product innovation encompasses four important aspects. These are thermal stability, requiring 'hot-fi/l' capabilities; the capability to quickly and cost effectively manufacture a Wide range of shapes and sizes; keeping product safely at the highest pOSSIb/e level by restricting oxygen and other elements that degrade the product; and, finally, providing sustainable packaging solutions with minimal raw material requirement and lighter container weight". Having now developed a good working understanding of what the rigid plastics division actually does; she shifted the focus of her research to the company's overall strategy, goals and objectives. In one of the company's internal documents, Sue reads about the benefits of decentralisation and recalled studying this in her management accounting course. The first question that came to her mind was whether there was a need to decentralise the rigid plastics division further. She noted that the division's offices are dispersed across the globe which suggested that it would be a complex task to create responsibility centres within the rigid plastics division. Rigid plastics divisions"no vodafone AU 4G 09:23 Cfl} b' 85% B La Trobe University operate in Latin America and the United States. Sue also had access to the following information about the Amcor Ltd's product related key flnancials for the year ended 30th June 2014 (in US dollars): Business Sales Profit before income tax Flexibles 86779 S823 million million Rigid S3,192 S298 Plastics million million Investments S(7) million S(39) /Other/ million lntersegment TOTAL 89,964million Si ,O82 million Discussion forum queonns"no vodafone AU 4G 09223 @ D' 85% E B La Trobe University C Week 6 e-Book 1 Workshop 6 case study scenario forum discussion quesfions Topic 6 - Financial Performance Reports and Transfer Pricing The next day Sue talked to Tom Banks, the General Manager, for the rigid plastics division. He was enthusiastic about the financial performance reports currently in use. He gave a brief overview of the division as follows and asked her opinion on how financial performance reports can be designed? "With more than 6000 people in 60 manufacturing operations in 73 countries, we are the leading supplier of consumer-driven rigid plastic packaging for the world 's most popular brands in the food beverage, pharmaceutical and personal / homecare industries. Some products involve unique shapes and specialised features With innovative finishes. We as packaging material experts have to balance these needs and design products accordingly. We have to conceptual/se trends in aesthetics, consumer H. .-. .. . ....