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Transfer Pricing part 1 - ACCA Performance Management (PM)

VIVA Subject Guide
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7 Comments

  1. John MoffatTutor
    Thank you for your comment.

    It was just an example. How the profit is split between the divisions depends on the transfer price that is agreed.
  2. Ibrahim
    I mean sir, $15 consists of variable and fixed costs
  3. John MoffatTutor
    It depends whether they have a policy of marginal cost plus or absorption cost plus (just as with 'normal' pricing as in my Pricing lectures earlier).
  4. Ibrahim
    Dear John,
    I hope you are doing well,
    In regards to cost-plus transfer pricing, Does this cost contain from variable and fixed costs or just variable?

    Thanks and Regards.
  5. Ibrahim
    I mean sir, $15 consists of variable and fixed costs
  6. Ibrahim
    Dear John Sir,

    How are you?
    I hope you are doing good?
    Thank you for your time and informative lecture.
    Thank you so much Sir,
  7. John MoffatTutor
    True, but given that most of their costs are the cost of the transfers from A, there are not many costs they can cut are there? :-)

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