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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.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.
Hey,
Thank you so much for the speedy reply. I will take your lectures if needed.
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