Pre-Summer Special Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: validbest

Exam IIA-ACCA All Questions
Exam IIA-ACCA All Questions

View all questions & answers for the IIA-ACCA exam

IIA CIA Challenge Exam IIA-ACCA Question # 97 Topic 10 Discussion

IIA-ACCA Exam Topic 10 Question 97 Discussion:
Question #: 97
Topic #: 10

Division A produces a product with a variable cost of $5 per unit and an allocated fixed cost of S3 per unit The market price of the product is S15 plus 20 percent selling cost. Division B currently purchases this product from an external supplier but is going to purchase it from division A for S18 Which of the following methods of transfer pricing is being used?


A.

Market price.


B.

Negotiation-based.


C.

Full absorption cost


D.

Variable cost


Get Premium IIA-ACCA Questions

Contribute your Thoughts:


Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.