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In part C,
(c)
Discuss whether or not including fixed costs in a transfer price is a sensible policy.One of the answer is
problem with this pricing strateqy is fixed costs are effectively treated as variable costs from the
The
Perspective of the stores, as thev are inluded within the variable buy-in price. This could lead to poor
decision making from a group perspectiveCan you explain it to me I can’t understand?
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