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Regarding transfer pricing in the kaplan kit, Qno 328.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Regarding transfer pricing in the kaplan kit, Qno 328.

  • This topic has 5 replies, 2 voices, and was last updated 1 year ago by LMR1006.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • February 22, 2024 at 5:14 am #700839
    Uzmaan
    Participant
    • Topics: 14
    • Replies: 20
    • ☆

    Sir, in the part b, ii) what I did was, I went back from having the RI as 85,000+ (CE×12%) 90,000 getting 175000 as the controllable profit, why can’t I get the transfer price as 175 000/15000?
    Though the answer was 66+6.67=71.67

    February 22, 2024 at 9:27 am #700865
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1487
    • ☆☆☆☆☆

    Which question title is it?

    Or which version of the kit is it?

    February 26, 2024 at 8:56 am #701157
    Uzmaan
    Participant
    • Topics: 14
    • Replies: 20
    • ☆

    Kaplan kit, Q328 part b, ii*

    February 26, 2024 at 9:39 am #701163
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1487
    • ☆☆☆☆☆

    There is no Q328 part b(ii) in my kit June 2024
    Unless you tell me the question name I cannot help you
    Stop being obtrusive

    February 26, 2024 at 11:06 am #701166
    Uzmaan
    Participant
    • Topics: 14
    • Replies: 20
    • ☆

    im sorry sir for not mentioning it clearly… its from the old kit, Q CTD,
    CTD has two divisions – FD and TM. FD is an iron foundry division which produces
    mouldings that have a limited external market and are also transferred to TM division. ( ive typed a small part for your reference)
    my doubt is…
    Sir, in the part b, ii) what I did was, I went back from having the RI as 85,000+ (CE×12%) 90,000 getting 175000 as the controllable profit, why can’t I get the transfer price as 175 000/15000?
    Though the answer was 66+6.67=71.67

    February 26, 2024 at 12:05 pm #701172
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1487
    • ☆☆☆☆☆

    The current transfer price is $66 agreed????????????

    To achieve a bonus of 5%
    You will want an increase in RI to $85,000
    It gives you that in the question

    Thus
    $85,000 / 15,000 = $5.67
    Added to the current TP of $66
    Equals $ 71.67

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Viewing 6 posts - 1 through 6 (of 6 total)
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