Transfer Pricing (part c)

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  1. Avatar of Nat Nat says:
    November 25, 2012 at 3:30 pm

    Thanks, really good explanation, it becomes very clear

  2. Avatar of annajuly annajuly says:
    October 6, 2012 at 9:33 am

    In transfer pricing does it mean that when there is external demand and limited capacity the charging of extra units you give priority to selling inside o

    • Avatar of ferrischan ferrischan says:
      October 14, 2012 at 3:45 am

      @annajuly,
      Hi it really depends. Say is the 1st example, transfer price to B would be $19-24. In this case A would be willing to selling to B at $19 as it make no difference whether to sell outside the 3000 units. However, in the 2nd example for the additional 3000, transfer to B would have to be $24. This would not be possible for B to accept as they will only be willing to buy at $22 max. Thus when the tutor mentioned if TP is at $23, it give none of the managers to transacts.

      In conclusion, it really depends on the TP price in making the decision (cause it will depends on the price A is selling outside). By following the tutor “format” it would easily help to guide you to the decision. Hope this explaination helps. All the best for the coming exam.

  3. Avatar of khawaja17 khawaja17 says:
    April 15, 2012 at 8:11 am

    best teacher of costing and best way to teach

  4. Avatar of musicyy musicyy says:
    April 4, 2012 at 8:55 am

    very helpful, thanks!!

  5. Avatar of himaambo himaambo says:
    April 1, 2012 at 4:49 pm

    Not running to the end

  6. Avatar of salinasamaroobrathwaite salinasamaroobrathwaite says:
    December 8, 2011 at 12:54 am

    He’s the best!!!!!!!!!!

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