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Hi Sir
In your revision lecture regarding this question, you said that that group profit will not be changed by change in divisional structure or change in transfer pricing. Could you please advise when group profit will be changed in relation to transfer pricing?
Thank you in advance and kind regards
Transfer pricing will normally only shift profits around the group. It will only alter group profits if it changes the decisions made by divisions. For example, a very low transfer price could discourage the manufacturing division from making anything because it could be condemned to making negative contributions. If it made nothing, the selling division could sell nothing and the group would make no profit.
Hi Sir
I would like to ask for the pass year June 2004 for the transfer pricing question on NAW Group, for quotation 2 how we know that we would recommend for sales of unbranded painfree instead of sales of digestisalve seem the quotation is for awaysafe…
Is this this type of question for transfer pricing format still be examinable?
Thank You.
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