| Foundations and Trends in Accounting
Competition and Cost Accounting
The central theme of Competition and Cost Accounting is that strategic considerations may make it desirable for a firm to have divisions and product managers internalize something other than their true costs. In the case of transfer prices, a high transfer price serves as a means of promoting tacit collusion. In the case of product cost measurement, an inferior cost allocation system that just spreads costs evenly may promote tacit collusion.
Keywords: ＂Cost Allocation,＂ Tranfer Pricing, Decentralization, Bertrand and Cournot Competition;