Abstract:
The aim of this research is to find a new model transfer price and find out how the calculation of fair transfer prices with existing methods is based on market prices, cost, and negotiation. Based on the previous study which in each method has some weaknesses, that weaknesses of market-based transfer prices are the non-existence of market, or the imperfection of the market; and the cost information may not exist or not available in detail for each division as the weaknesses of cost-based transfer prices; moreover, negotiated transfer prices for the process that is time consuming and need to be updated constantly following the changes. (Hongren et al., 2015) This research is a mix research which is between qualitative and quantitative research. Data collection techniques in this study are secondary data, which are taken from journals, books, and websites such as the Indonesia Stock Exchange, Bank Indonesia, etc. The sample in this study is a manufacturing companies in the field of cigarettes, food and refreshment that listed on the Indonesia Stock Exchange, which are PT Hanjaya Mandala Sampoerna Tbk., PT Gudang Garam Tbk., PT Bentoel Internasional Investama Tbk., PT Indofood Sukses Makmur Tbk., And PT Unilever Indonesia Tbk. by analyzing the Annual Report from the period 2015 to 2017. Then, applying the previous and new models to each sample, then comparing them and calculating the standard deviation and standard error in the model to be accurately. The results of this study show that the new model transfer prices is better than the cost-based transfer price calculation, where the results of standard deviations and standard errors on the new model are smaller than the cost-based transfer prices. So, the new model of transfer pricing more accurately, and effectively.
