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Ask the Tutor ACCA APM

Transfer pricing.

ABAkka Bakka6y ago
Hi Tutor, Could you please explain what is ''dual pricing'' in the recovery of fixed cost portion of transfer pricing? Thank you.
kengarrettkengarrettTutor6y ago#1
The selling division books sales at full cost plus a markup. This will give it the opportunity to recover its fixed costs and to male a profit. The buying division books purchases in at marginal cost allowing it to make economic ecisions that are right for the group.
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