Transfer Pricing Management Information Systems

A somewhat controversial but continuing trend among large divisionalized corporations is to centralize the provision of information system services in the MIS department. The objectives of centralizing all or most MIS activities are to. obtain economies of scale in the acquisition of computer hardware and to eliminate duplicate system development 191. The centralization of MIS functions, however, creates certain adminiistrative problems. These problems center around the degree of responsibility delegated to MIS for the choice and design of information systems, corporate control over the efficiency and effectiveness of MIS and the relationship between MIS and the corporate departments or divisions which use the service.