Students in an introductory management accounting course are given a brief introduction to the concept of transfer pricing and presented with a transfer pricing problem without any guidance on how to solve the problem. The problem requires groups of students to play the role of a selling(buying) division and determine an acceptable minimum(maximum) price for their group before negotiating with other groups. Students learn transfer pricing inductively as they work through the details of the case and arrive at a profit maximizing price for the product they are selling(buying)
