Research On H Iron Company Internal Transfer Pricing

The Ministry of Finance on the "Guiding Opinions on Comprehensively Promoting the Construction of Management Accounting System","Basic Guidelines for Management Accounting","Notice on Printing and Distributing 22 Management Accounting Application Guidelines including " Management Accounting Application Guidelines No.100-Strategic Management "," About The issuance of documents such as the "Notice on the Application Guidelines for Management Accounting No.204-Operational Budget" and other 5Application Guidelines for Management Accounting has opened a new chapter in the reform and development of management accounting in my country.In recent years,my country's theoretical and practical research on management accounting has been very rich,with topics covering strategic management,budget management,cost management,performance management,etc.However,domestic theoretical and practical research on internal transfer pricing is still insufficient.Internal transfer pricing is a management accounting tool that originated abroad.Generally,companies use internal transfer pricing to define the economic responsibilities of different sectors,while multinational companies also use internal transfer pricing to avoid taxation.This article restricts internal transfer pricing to the pricing standards of products,services,funds,etc.exchanged between various responsibility centers within the enterprise.Its main function is to clarify the economic responsibilities of different responsibility centers and provide a basis for performance evaluation.This article sorts out the classification of internal transfer pricing in mainstream textbooks at home and abroad,combined with the classification of the Ministry of Finance No.404 "Internal Transfer Pricing",and provides new thinking on classification standards and classification results.For example,cost-plus prices should be reclassified as price-based internal transfer prices based on the principle of substance over form.This article chooses the steel industry as an entry point,analyzes the characteristics of the steel industry's application of internal transfer pricing,and provides a theoretical basis for the steel industry to apply internal transfer pricing.Company H is a typical steel company applying internal transfer pricing.First,the steel industry with long processes and diversified intermediate products has regular internal transactions;secondly,H company has rich experience in building application foundations,such as reasonable division of responsibility centers and selection of appropriate ERP systems;finally,H company has a wide range of price types and has A certain degree of innovation,such as adding cost to designated products according to the company's strategy to guide product transformation and upgrading.By analyzing the case of H company's internal pricing,there are conclusions about the research.For example,before applying internal transfer pricing,companies need to reasonably divide responsibility centers.In the process of applying internal transfer pricing,companies can combine strategies to set reasonable bonuses for products,thereby encouraging the production of high-end products.Of course,this article also has shortcomings.For other companies that have little or no application conditions,this article cannot provide relevant suggestions.