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October 27, 2020 at 7:40 pm
I mean sir, $15 consists of variable and fixed costs
John Moffat says
October 28, 2020 at 7:58 am
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).
October 27, 2020 at 6:59 pm
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.
October 25, 2020 at 9:08 pm
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,
November 11, 2018 at 2:42 pm
Sir in example 3 If company B cuts down it’s own cost They would too make a profit right? It would also lead to goal congruence So transfer pricing isn’t the only solution isn’t it? Even if company B cuts down it’s own cost It could too make profit for the division and also for the company too
November 11, 2018 at 7:42 pm
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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