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Followup on transfer price

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Followup on transfer price

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • February 25, 2018 at 7:24 pm #438929
    Avatarhumai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    Sir 2 things I want to ask regarding this:

    If there is unlimited production capacity and unlimited external demand then in such case Minimum transfer price is greater than MC OR is it equal to MC?

    If there is unlimited production capacity and limited external demand then in such case Minimum transfer price is greater than MC OR is it equal to MC?

    February 26, 2018 at 8:01 am #438976
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    The minimum is equal to the MC. The actual transfer price must therefore be greater than or equal to the MC.

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  • The topic ‘Followup on transfer price’ is closed to new replies.

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