TY - JOUR

T1 - Subjectivity and fairness in bonus plans

T2 - A TRANSFER PRICING APPROACH - study case

AU - Lueg, Rainer

PY - 2021/6

Y1 - 2021/6

N2 - This case deals with a company in the recycling industry that faces the challenge of rapid organic growth in its customer base, as well as large capital investments. The company struggles with updating its transfer pricing system. The case illustrates how this leads to conflicts about bonus plans among division heads. The discussion of the case is open-ended. It specifically fosters understanding the role of operating leverage for profitability, as well as distributive fairness in bonus plans.

AB - This case deals with a company in the recycling industry that faces the challenge of rapid organic growth in its customer base, as well as large capital investments. The company struggles with updating its transfer pricing system. The case illustrates how this leads to conflicts about bonus plans among division heads. The discussion of the case is open-ended. It specifically fosters understanding the role of operating leverage for profitability, as well as distributive fairness in bonus plans.

KW - Management studies

KW - time-driven Activity-based Costing

KW - teaching notes

KW - transfer pricing

KW - bonus plan

KW - fairness

U2 - 10.18374/IJSM-21-1.3

DO - 10.18374/IJSM-21-1.3

M3 - Journal articles

VL - 21

SP - 48

EP - 56

JO - International Journal of Strategic Management

JF - International Journal of Strategic Management

SN - 1555-2411

IS - 1

ER -