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If there is no external market for an intermediate product, then the transfer price should be set equal to :?

 a. the marginal cost of producing the optimal quantity of the intermediate product. 

 b. the marginal cost of producing the final product. 

 c. the selling price of the final product. 

 d. None of the above is correct. 

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/07/22
Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

*******Option (a). the marginal cost of producing the optimal quantity of the intermediate product.

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

 a. the marginal cost of producing the optimal quantity of the intermediate product.......................................

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

  1. The correct answer was: a. the marginal cost of producing the optimal quantity of the intermediate product.. the marginal cost of producing the optimal quantity of the intermediate product. 

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

 

My Answer Is Option " A " ...

Salvatore Augello
by Salvatore Augello , owner , A.S. Trade & Consult

it's A ___________________________________________

Elke Woofter
by Elke Woofter , Project Assistant , American Technical Associates

I go with option A ...................

Hridayanand Nayak
by Hridayanand Nayak , Sales Manager South Asia, Neuromodulation , LivaNova India Pvt. Ltd.

D. None of the above is correct

It is important to ascertain the importance/ relation of the imtermediate product with respect to the final product. Pricing can be fixed accordingly. 

Sashikanta Mohapatra
by Sashikanta Mohapatra , Manager - Business Development/Sales Process Deployment , Vodafone Spacetel Limited

It's the1st option .....   Option A.

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