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Q. What do you mean by Dual pricing?
Dual transfer pricing means setting one transfer price for the internal seller and another transfer price for the internal buyer. The basic idea is to encourage trade by creating the most beneficial price for both parties.
The difference between the two transfer prices would need reconciling by head office when preparing the group consolidated financial results. Dual pricing is a similar approach to the opportunity cost approach which is discussed later.
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The long-term cash-making capability of the company
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what is the greatest takeaway from this case in terms of strategic management
Components of the cost of production Any sustained rise in input prices usually lead to an increase in productprices through the cascading effect. The major components of the c
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