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Transfer Pricing Model:

Which of the following transfer pricing models sets prices at actual cost less all fixed costs? a Variable cost b. Full cost c. Market price d. Negotiated price

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Question ajoutée par Anayatullah Tahir , Finance Manager , Etqan Projects
Date de publication: 2014/03/24
amr aly
par amr aly , محاسب تكاليف , الشركة المالية والصناعية المصرية

transfer pricing model:- is the price of comodity or service b/w divisons for the same institute or b/w 2 department in the same institute

there are three models of transfer pricing :-

1- cost based :- it contain the industrial cost production

2 - negotiable price :- both branches or dept. agreed on a specific price

3- market peice:- pricing depend on the balace of the first duration

The aim from transfer pricing is to maximize the dept. or the branch profit take in consideration also maximizing the organization profit and that should be approved and declared in dependent and consolidated statements

Dr  Vikram Singh Rathore
par Dr Vikram Singh Rathore , Assistant Professor , Electronic Governance

If the variable costs are less than Rs 200 per unit but the transfer price is set equal to the market price of Rs 200, then the manager of Division A is indifferent as to whether materials are ... Cost-basedtransfer prices may be in different forms such as variable costactual full costfull cost plus profit margin, standard full cost.

Kamal Fayad
par Kamal Fayad , The Marketing, PR, Loyalty & CRM Head , Arabian Oud

Please rephrase your question, not clear.

Mark John Domingo
par Mark John Domingo , General Accountant , Palma Holding

A

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