TRANSFER PRICING AS INSTRUMENT OF INDUSTRIAL HOLDING ECONOMIC MANAGEMENT

Abstract

Despite mush attention which is paid to transfer pricing methods optimization they remain actual. A conceptual approaches variety when choosing production and marketing function modeling parameters, allows to consider transfer pricing as the object of micro-, meso - and macroeconomic systems. In the course of the practical implementation of models it turned to be necessary to adapt them to the specificity of strategic management in the holding entities including not only restriction in technical and economic parameters of the entire holding and its companies activity planning, but the institutional specificity of established interrelations between business processes and foreign market segments as well. The object of this study is the process of transfer pricing on steel and rolled metal by pump bars production. There exists a model demonstrating the mechanism to decide on values created when producing pump bars. The analysis of this model makes it possible to reveal the administration potentialities for improvement. The model of the transfer pricing, allowing to consider the influence of the intermediate and final products quality on the distributed financial result.