Current Cost Accounting System,ply Allied operated its forms manufacturing and TFC activities as separate profit centers. The transfer of product to TFC was at arm's length with the transfer price set at fair market value. Allied manufactured business forms in 13 locations. Although the company encouraged internal sourcing for customer orders, TFC salespeople had the op- tion of outsourcing product if necessary. The industry value chain for TFC is shown in Exhibit 1. This case was adapted by Professor John Shank of the Amos Tuck School, by permission, from earlier versions prepared by Professor Vijay Govinda and Jay Weiss 93) of the Dartmouth College.ช