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Explain about different types of transfer prices

Assignment Help Managerial Accounting
Reference no: EM132188281 , Length: 1250 Words

Part - A

What is transfer price?

Explain about different types of Transfer prices.

Reasons behind the usage of these transfer prices.

Different purposes for usage of transfer prices.

Part - B

1. Cost-based transfer prices not appropriate for divisional performance measurement

2. Contribution margin for both the divisions

3. Calculation of operating profit for both the divisions

4. Computation of lowest transfer price

Reference no: EM132188281

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