transfer pricing

This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.

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August 29, 2018 at 2:59 pm #470022
vavneetb
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Hi

I have watched all your videos on TP and i get it all but when i practice questions i am not able to solve it.
Can ypu please expalin me: There are 3 approaches
MArket based, Cost based and negotiated
1)when there is external market (like when it says Div atransfer produc x to division b for MC $56 and selling and distribution is $4 not included in MC but externally division b is getting same profuct for $70) Division a in full capacity . what is the TP?
Will it be$56-MC or $ 66(70-4).

Thanks
August 30, 2018 at 10:56 am #470127
John Moffat
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You say that you have watched all my lectures, but I never mention three approaches in the lectures – it is not relevant for the exam.

Also, you cannot be asked ‘what is the TP’ – what would be asked for the minimum TP or the maximum TP, or both.

The figures you give in your example are not enough to be able to provide an answer.
August 30, 2018 at 11:09 am #470139
vavneetb
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Yes i have watched all your lectures. but then i watched some you tube videos as well.
Both maximum and minimum

Thanks
August 30, 2018 at 11:37 am #470155
John Moffat
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My lectures cover everything needed to be able to pass the exam well – they are a complete free course for Paper PM.
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