BPP Black Friday sale!

40% discount on all BPP books specially for OpenTuition students!
Get it here >>

Marginal cost (transfer pricing) pls help

This topic has 2 replies, 2 voices, and was last updated 11 years ago by Amarain.

Viewing 3 posts - 1 through 3 (of 3 total)

Author
Posts
May 25, 2013 at 12:16 pm #127143
hunnain
Member
- Topics: 2
- Replies: 18
the ideal situation, if a spare capacity exists is to transfer units at a marginal cost per unit.
is the marginal cost per unit equal to VARIABLE COST PER UNIT or CONTRIBUTION PER UNIT??
pls help. i have seen many solutions using both. but i want to know which one is right..
May 25, 2013 at 1:09 pm #127147
hunnain
Member
- Topics: 2
- Replies: 18
the latest lsbf mock has used the contribution per unit as the marginal cost. i think this is wrong? or correct me pls. thankyou
May 26, 2013 at 7:41 am #127204
Amarain
Member
- Topics: 5
- Replies: 70
Hi hunnain,
If spare capacity exist and there is not an external market best for the company is to transfer at VARIABLE COST. If you could tell me what that Q you have seen says I might be able to help.
Amarain
Author
Posts

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.