Came across this elegant way of calculating transfer pricing -
Transfer Price = Incremental Cost of production + Opportunity Cost
Assumption being that the product has a market. Where the product is unique and does not have a market then the incremental cost of production alone is to be considered.
Finished reading "Snapshots from Hell".Nice read. Dunno how far it is applicable to Indian B Schools. Going by what I hear abt the work load n pressure @ IIMs, Peter Robinson probably had it easy at Stanford.
One of the good things abt GD/PI is the enormous amount of reading that gets done preparing for it.For example, in my case, it meant getting in touch with acads after a gap of abt 2 years. Funny thing is that, I have now started realising the logic behind a lot of things I studied. Standard costing which when studying was nothing more than a painful list of formulae, now seems a lot more logical and fun.
Preparation for B started in right earnest.
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