BIRCH PAPER

COMPANY
CASE 6-2

AGENDA

Summary of the case

Issues (what the case deals with)
Questions
Conclusion

CASE BACKGROUND

This case address transfer pricing

Birch Paper Company is a medium size
partially integrated company
It produces white, kraft papers and
paperboard
Birch Paper has four producing division and a
Timberland Division that produces pulp

CASE BACKGROUND CONT

BREAKDOWN OF DIVISIONS
Birch Paper
Company
Thompson
Division

Northern
Division

Southern
Division

Timberland
Division

BACKGROUND

Each division is judged

independently on the basis of profit
and return on investment
Has a policy of decentralizing
responsibilities and authority for all
decisions except for decisions
relating to the overall company
policy

SITUATION

This Case centres around transfer pricing