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A study of 79 MNCs revealed that international transfer pricing from one country unit to another is primarily used to
Single Plantwide Factory Overhead Rate
A single rate used to allocate factory overhead costs to products, calculated by dividing total overhead costs by a base, usually total direct labor hours or machine hours.
Direct Labor Hours
The total hours worked by employees that can be directly associated with the production of goods or services.
Single Plantwide Overhead Rate
A cost allocation method that applies the same overhead rate to all products, regardless of the department where they were produced or the amount of overhead they actually incurred.
Machine Hours
A metric used to allocate manufacturing overhead costs to individual products based on the number of hours the machines are run to produce them.
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