Transfer price III

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September 14, 2020 at 12:29 pm #585540
Noah098
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Sir if there is no external market for a transferring – out division’s products then even in the short run the transfer price would be FULL COST plus profit basis? Or only in the long run would this be the case, assuming we have no knowledge about the range of products manufactured by the transferring- out division.
September 14, 2020 at 2:58 pm #585559
John Moffat
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It will not be full cost plus for the reasons I explain in my lectures.
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