December 2023 ACCA exams:

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transfer pricing

This topic has 3 replies, 3 voices, and was last updated 1 year ago by John Moffat.

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August 27, 2022 at 5:31 pm #664450
jestinbenny2000@gmail.com
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how to calculate the maximum transfer price accepted by the buyer
August 27, 2022 at 5:33 pm #664451
John Moffat
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- Topics: 56
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It is the lower of the net marginal revenue and any external purchase cost.
This is all explained with examples in my free lectures on transfer pricing.
The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
August 30, 2022 at 7:26 pm #664706
home001
Participant
- Topics: 7
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Direct Material cost 100
Direct labour cost 80
Total cost (variable 80%) 200
What is tp if company wants to achieve profit margin of 20%
Best regard
August 31, 2022 at 6:20 am #664724
John Moffat
Keymaster
- Topics: 56
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This is not a complete question because it is not specified as to what the costs are in each division separately.
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