Fuel GmbH, the new Lufthansa AG subsidiary, is organizing the companys fuel warehousing. Fuel GmbH is subdivided

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Fuel GmbH, the new Lufthansa AG subsidiary, is organizing the company’s fuel warehousing. Fuel GmbH is subdivided into two profit centers: Profit Center A is located in Baku/Aserbadschan, and sells kerosine to the Profit Center B located in Bremen. Kerosine of the same quality is traded on the Rotterdam exchange. Current quote is at 68.33€ per barrel.

(1) Give a sketch of the in-house transfer!

(2) Which method of transfer pricing has to be used? Give detailed reasons for your answer and explain the proceedings when applying the method!

Posted Date: Sep 20, 2021 02:52 PM

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Fuel GmbH, the new Lufthansa AG subsidiary, is organizing the companys fuel warehousing. Fuel GmbH is subdivided

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1 INTERDEPARTMENTAL TRANSFERS The goods transferred by one department to another department is calle... View the full answer

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