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Ardentis Nexus

A Global Transfer Pricing Simulation

A multi-round business simulation about transfer pricing, opportunity cost, negotiation, and goal congruence.

ardentis-nexus
Transfer pricing simulation dashboard showing divisional business decisions

Overview

Ardentis Nexus places learners inside a global organisation where two business divisions depend on one another. One division produces a critical component; the other needs that component to manufacture and sell the final product. Both divisions are evaluated on their own performance, but the company succeeds only when their decisions create value for the organisation as a whole.

Across multiple decision rounds, participants interpret cost structures, external market alternatives, capacity constraints, and changes in demand. They negotiate transfer prices, respond to shocks, and see how a price that appears rational for one division can reduce total company profit.

The simulation turns transfer pricing from a formula-based topic into a lived managerial problem. Learners must work through the tension between divisional autonomy and goal congruence while recognising the role of incremental cost, opportunity cost, unused capacity, and external alternatives.

What participants experience

Open any item for the detail.

  • Multi-Round Decision-Making

    Each round changes the commercial context, requiring learners to revisit their assumptions rather than apply one static formula.

  • Interdependent Divisions

    The selling and buying divisions have different objectives, information, and performance pressures.

  • Internal and External Alternatives

    Participants compare internal transfer opportunities with external buying and selling options.

  • Capacity and Opportunity Cost

    Learners experience why unused capacity and constrained capacity lead to different minimum transfer prices.

  • Negotiation and Goal Congruence

    The simulation reveals when divisional incentives support total company value and when they create conflict.

  • Decision History and Performance Feedback

    Teams can review how transfer prices and sourcing decisions affected divisional and company-level outcomes over time.

Learning objectives

Minimum Transfer Price
Calculate and interpret the seller’s minimum acceptable transfer price using incremental and opportunity costs.
Maximum Transfer Price
Determine the buyer’s maximum acceptable transfer price based on external alternatives and internal savings.
Opportunity Cost
Understand how constrained capacity changes the economic cost of an internal transfer.
Goal Congruence
Recognise when divisional decisions maximise local performance but reduce total company value.
Negotiation
Develop and defend a transfer price using relevant financial and operational information.
Dynamic Decision-Making
Adapt decisions when market prices, capacity, demand, or input costs change.

Recommended use cases

  • Managerial accounting courses
  • Transfer pricing modules
  • Executive education in finance
  • Internal pricing and divisional performance discussions
  • Negotiation exercises with financial data
  • Goal-congruence and responsibility-accounting sessions

Facilitator notes

The Facilitator Notes will include preparation guidance, round-by-round learning connections, suggested debrief questions, common participant mistakes, calculation logic, and prompts for discussing divisional incentives and company-wide value.

Available soon

Explore the Simulation Before Using It

Submit your details and receive the demo link by email immediately. The demo will allow you to review the learner interface, decision flow, financial information, and performance feedback.

Your demo access will be emailed immediately after submission.

Your demo access will be emailed immediately after submission.

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