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transfer pricing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › transfer pricing

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • September 10, 2020 at 7:31 am #584588
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    sir the maximum price that the buying division would be willing to pay to selling division would be,
    selling price of a product say, B less marginal cost of B less FCs? Or FCs will be ignored when calculating the maximum price willing to be paid by buying division?

    September 10, 2020 at 9:45 am #584625
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    As I explain in my free lectures we ignore fixed costs on the assumption that they will be making other products – not just the product being considered.

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