Forums › ACCA Forums › ACCA PM Performance Management Forums › transfer pricing
- This topic has 7 replies, 2 voices, and was last updated 9 years ago by John Moffat.
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- October 1, 2014 at 3:08 am #202714
In Q 69.4 bpp revision kit dec2014-june2015 how is the maximum transfer price set 25$ ?? Isn’t it lower of external market price and NMR ?
October 1, 2014 at 6:58 am #202731It is a poorly worded question from BPP.
The ‘market price in the external market’ is meant to be the price that Division A can sell it at (not the price that Division B can buy it for).
The question does not make that clear (although it does refer later to external market demand which I suppose is a clue!).
October 1, 2014 at 12:06 pm #202812Ooh okay thanks
October 1, 2014 at 4:53 pm #202845You are welcome, Fahad 🙂
October 4, 2014 at 6:46 am #203430In the question 72.8 the center manager is considering to sell machine and that machine would add 2500 to divisional profit next year , when we are preparing the ROI for next year why is the profit of 2500 being deducted instead of increasing profit ?
October 4, 2014 at 9:10 am #203446The question says that the machine they are considering selling is already included in the forecasts.
So if they sell the machine and buy the new one, then the forecast profit will fall by the 2500 because of the one being sold, and increase by 5200 due to the new one being bought.
(When it is a new topic, please start a new thread. This has nothing to do with transfer pricing 🙂 )
October 4, 2014 at 11:30 am #203466Oh my apologies
October 4, 2014 at 1:50 pm #203479No problem 🙂
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