Transfer pricing question

The markers look through everything you write – even if it is crossed out 🙂

So don’t worry. If you were doing it correctly then you will get the marks (even if you crossed it out 🙂 )

Hi John

I’ve got to say that I found this question confusing as I thought that the $30 was a variable cost incurred by the other Division after it was ‘sold’ to them for further processing before they sold it on, however there was no selling price given. This is what was given in previous examples that I studied. From looking at your suggested answers you have deducted this $30 from the $770 so I think that I have got the wrong end of the stick here?
Please can you explain why you do this?

Oh no, what a silly mistake that I have made. Especially as I understand Transfer Pricing after watching your lectures and going through your notes. I would have got this right if I had read the question properly.

Thanks for letting me know, I am hoping that I have enough marks from the other questions as the rest of Section B looks promising but obviously nobody knows about Section A yet!

I’m on to F4 next, I’m guessing that this is with a different tutor.
Cheers for all of your help John, you have been a real star!! 🙂

Oh that’s good. Let’s hope I get there! Maybe I can plan to do that soon as I’m sure that you can take F4 – F9 in any order.

That’s good – will ‘see’ you again soon then 🙂