Budget slack directly impacts the management of company's budget control. This article develops a comprehensive approach on evaluating the budget slack of company's business units by leveraging their operation efficiency and transfer value under the internal transfer system. This result greatly...

This paper studies divisional budgetary forecasting and evaluation from the perspective of internal transfer mechanism. Considering divisional budget is relatively volatile and difficult for direct forecasting, and divisional operation efficiency is relatively stable and easy to predict, this...

This paper studies the performance metrics of the middle management in the cost centers of firms from the empirical perspective of internal transfer price mechanism. As firms’ middle managements are usually in charge of business units, this paper will use these business units’ results as the...