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Transfer pricing (cost based approach)

SSahil5y ago
Hi Team, My question to you is, while calculating Transfer price under "cost based approach". If we are told to use Opportunity Cost then we take Marginal cost + Opportunity cost right ??? However what about FIXED COST ?? Will we take Fixed Cost under " Full Cost" method Only?? Thank you in advance We are so grateful to Opentuition.
John MoffatJohn MoffatTutor5y ago#1
Fixed costs are only relevant if the question says to take a 'full cost plus' approach. Have you watched my free lectures on transfer pricing? The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
SSahil5y ago#2
Hey, Thank you so much for the speedy reply. I will take your lectures if needed.
John MoffatJohn MoffatTutor5y ago#3
You are welcome :-)
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