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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Transfer Price
Dear John,
I have a question related to transfer price,when transfer price on full cost basis is used?and where opportunity concept applied on transfer price?
Transfer price should be the marginal cost plus any lost contribution (i.e. opportunity cost).
The fixed overheads of the transferring division are not relevant unless the total increases as a result of making the particular product.
All of this is explained in my free lectures.
