Getting Transfer Prices Right: What Bellcore Did

The subject of transfer pricing doesn’t normally excite many people, but when your transfer pricing system is less than perfect, life gets interesting. We at Bellcore first got interested in transfer pricing in 1983. That’s the year before AT&T was broken up and Bellcore was being formed as the centralized organization supporting the seven regional […]

by

Edward J. Kovac

and

Henry P. Troy

by

Edward J. Kovac

and

Henry P. Troy

From the Magazine (September–October 1989)

The subject of transfer pricing doesn’t normally excite many people, but when your transfer pricing system is less than perfect, life gets interesting.

A version of this article appeared in the September–October 1989 issue of Harvard Business Review.

EK

Edward J. Kovac is division manager, corporate telecommunications at Bellcore (Bell Communications Research). He chaired the committee that investigated Bellcore’s transfer pricing system.
HT

Henry P. Troy is executive director of Bellcore’s account management serving Southwestern Bell. Previously, he was district manager in charge of cost containment and represented the comptroller in recommending changes to the transfer pricing system.

Getting Transfer Prices Right: What Bellcore Did

Partner Center

Explore HBR

HBR Store

About HBR

Manage My Account

Follow HBR