Build the cost-plus service charge
Construct an intercompany services cost-plus charge from benefit-tested costs and allocation drivers.
Build a defensible regional services charge from $2.4M of HQ costs covering IT support, HR policy, board reporting, and acquisition diligence. Service pricing sequence: benefit test, clean cost base, benefit-linked allocation, then markup. The common trap is to allocate the full pool by revenue and apply markup before removing shareholder or non-beneficial activities. Benefit test Classify activities: IT helpdesk benefits subsidiaries; HR policy benefits subsidiaries; board reporting benefits parent ownership; acquisition diligence benefits buyer strategy. Only services that benefit recipients belong in the chargeable pool. Clean pool $2.4M raw cost - $180k board reporting - $120k acquisition diligence = $2.1M…
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