Cima P2 Exam Question 37

Question No 37:

An organization employs a dual pricing basis for the transfer of components between its divisions.  This means that:

A. Each division has a separate transfer price for a single transaction.
B. The transfer price is based on marginal cost with a separate charge to allow for fixed costs.
C. The transfer price is based on the cost of the product plus a mark-up for profit.
D. The transfer price is based on the market price less a discount.

Answer: A