Explain three common transfer pricing policies

Reference no: EM131342290

1. Briefly explain three common transfer pricing policies used by organizations.

2. What is the difference between the unit cost of a product under absorption costing and under variable costing?

3. If a company produces 10,000 units and sells 8,000 units during a period, which method of computing operating income (absorption costing or variable costing) will result in the higher operating income? Why?

Reference no: EM131342290

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