Tranfer Pricing and Agency Theory
Performance management:
It is composed by objectives, that are achieved through programs, that are supported by technologies. There are different to objectives to achieve in single departments and areas: 1. Cost reduction

2. Quality improvement
3. Capacity improvement
Since there are a lot of objectives, we say that performance management is discursive. To manage the achievement of meeting these obj there are different programs: 1. Lean production (for cost reduction)

2. Total Quality Management, Manufacturing Excellence (for quality improvement) 3. Demand Chain Planning (capacity improvement)
Since all the objectives can be reached with different programs, we say that performance management is programmatic. Management technologies = managing accounting techniques. There are different costing systems/technologies implemented to support the programs: 1. Target costing, Activity Based Costing, Kaizen Costing 2. 6sigma

3. S&OP Process
We thus say that performance management is also technological.

Accounting numbers foster control at a distance. Everything becomes a number in the accounting report: we reduce the complexity of a real world in a 3D form into some 2D accounting reports. These 2D reports lead to “amplification”, caused by the fact that: * reports are mobile/transportable

* reports are combinable between each other in order to provide a more complete picture of the reality * numbers make everything manageable.

How are 2D reports used?
They can come from both paper and computer resources. They are used in every strategy: * Pricing strategy: they implement it through some cost analysis: if we look at the cost of a product, we would find that a significant part of the cost is constituted by R&D costs, that are fixed costs substained before the product is introduced therefore when the product is