CIMA Related Exams
P2 Exam
Which of the following is the ideal basis to use for a transfer price when there is a perfect external market?
An organization is comprised of two divisions. One of the divisions manufactures a product that it sells both to an imperfect external market and to the other division.
The organization wishes to establish the most suitable basis for the transfer price for this product and is considering either a negotiated transfer price or a market-based transfer price.
Which of the following statements is correct?
Which of the following is a correct description of the key features of net present value?