Subjectivity and fairness in bonus plans: A TRANSFER PRICING APPROACH - study case

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Authors

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.
Original languageEnglish
JournalInternational Journal of Strategic Management
Volume21
Issue number1
Pages (from-to)48-56
Number of pages9
ISSN1555-2411
DOIs
Publication statusPublished - 06.2021

    Research areas

  • Management studies - time-driven Activity-based Costing, teaching notes, transfer pricing, bonus plan, fairness

DOI