Transfer pricing.

This topic has 1 reply, 2 voices, and was last updated 5 years ago by Ken Garrett.

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August 26, 2020 at 12:05 pm #582098
akka17bakka
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Hi Tutor,

Could you please explain what is ”dual pricing” in the recovery of fixed cost portion of transfer pricing?

Thank you.
August 26, 2020 at 5:14 pm #582192
Ken Garrett
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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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