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John Moffat.
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Holmes1308
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The short-term opportunity cost to one Division say, X, of transferring units of ‘X8(for example), to Division Y is the marginal cost of production, Z.
sir i dont understand the above mentioned example, especially how the transfer becomes an opportunity cost?
Holmes1308
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sorry sir for the misguiding title.
John Moffat
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What you have typed does not make any sense on its own because there is no information as to why product Z has any relevance at all to units of X8.
Have you watched my free lectures on transfer pricing where I explain everything relevant for the exam. The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
John MoffatViewing 3 posts - 1 through 3 (of 3 total)
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