The role of transfer pricing methods to enhance performance evaluation of economic units : an applied study in Alan group for producing Kawanter

Abstract EN

The research aimed at identifying the application methods of transfer pricing in Alan Group for producing Kawanter as a sample of the research in order to evaluate performance its two divisions particularly and whole factory through (ROI as a traditional technique and EVA as a new technique) indicator.

The problem of the research is the lack of interest in applying transfer pricing methods by economic units in Erbil despite its importance; since the limited application of the transfer pricing in some of the economic units might not help in measuring the performance of economic units.

The research relied on deductive approach to define the research problem, the historical approach to review some of the previous studies, and the practical study approach to determine the relevant method at application of transfer pricing, the researcher "Alan Group" was chosen to produce a Kwanter as his research sample to test his hypothesis, due to the possibility of measuring the costs and revenues of each division of the sample for the first half of year 2021, and therefore the possibility of relying on it to measure the return on investment indicator and the added economic value indicator as a tool for evaluating the division's performance individually and the sample in general.

The most important findings of the study indicated that different methods of transfer pricing can be used to measure the performance of divisions in "Alan Group" factory as a sample of the research; The most important recommendations of the research call for the multi-divisions of economic units in environmental local to select a method among three methods when applicated transfer pricing that suitable with nature of their activity and products for purpose of performance evaluation.