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Transfer Pricing Internally between Divisions
A question could not be asked in this form in the real exam.
However, as I explain in my free lectures, the minimum transfer price will be the marginal cost of production in Division A. The maximum transfer price will be the external purchase price.
I cannot spend the time on this because, as I wrote before, a question could not be asked in this form in the Paper PM exam.
Have you watched my free lectures on this?
Also, which are you attempting a question for which you do not have an answer. You should be using a Revision Kit from one of the ACCA Approved Publishers. This forum exists for you to ask about anything you are not clear about in our lectures or in past exam questions. It is not to provided with full answers to full questions :-)
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