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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Transfer pricing 2
Hi Sir.
I saw this example in my book and wondered if you could help?
D LTD uses cost based transfer pricing. Du division has cost of 300 per a unit. Da has divisional cost of 250. What will DA’s total cost per unit be if there is a mark up of 60%?
How do I know who is selling to who? the only different thing mention is one has divisional cost, the other has cost?
It makes no difference whatsoever as far as the total profit for the company is concerned. The total cost per unit is 300 + 250 = 550.
See my answer to your other question, and do watch the free lectures on this.