UNIVERSITY OF THE PHILIPPINES
Institute of Management
College of Social Sciences

SHUMAN AUTOMOBILES, INC.
RESPONSIBILITY ACCOUNTING
TRANSFER PRICING

Submitted By:
Ame, Donna Mae B.
Dela Pena, Melissa S.
Dulad, Jhune E.

Submitted to:
Sir Jay Stephen Siy

12 October 2006

CASE 22 – 1 : SHUMAN AUTOMOBILES, INC.
Responsibility Accounting & Transfer Pricing

Facts of the Case:
1. Clark Shuman, owner and general manager, plans to retire and relinquished his control over the company
2. Business has been doing good with an emphasis of selling new cars as the principal business of the dealership
3. He created three independent departments, namely new car sales, used car sales, and service department.
4. Salary is dependent on each department's gross profit
5. Upon the take over of the managerial positions, Janet Moyer of the new car sales had a first challenge of making a sale through a costumer who wanted to trade his old car with a new car.
6. Moyer had......

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Title: Shuman Automobiles, Inc.
Approximate Word Count: 1568
Approximate Pages: 7 (250 words per double-spaced page)

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