Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › ACCA PM Workbook Chapter 20 Activity 4: Transfer Pricing approaches
- This topic has 1 reply, 2 voices, and was last updated 1 month ago by John Moffat.
- February 18, 2023 at 12:44 pm #679094chackiParticipant
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In activity 4, we are asked to whether the company should make the cake internally or buy them in. When calculating this why don’t we include the fixed overhead saved from buying externally.
So for example something like this:
V.C of making in 20
V.C of buying 30
Extra cost from buying: 10
Fixed cost saving from buying: (8)
Extra cost from buying: 2
Rather than just looking at V.C of making and buying in?
Thanks,February 18, 2023 at 5:29 pm #679108John MoffatKeymaster
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I am afraid that I cannot help you without seeing the whole question (and I do not know which workbook you are referring to – the ACCA does not itself produce any books).
The ACCA Approved Publishers are BPP and Kaplan, although I only have the BPP Revision Kit (because the lectures are a complete free course covering everything needed to be able to pass the exam well, so if you are watching the lectures it is only the Revision Kit that is the essential book).
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