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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.
TFX is a multinational company which manufactures and retails branded designer clothing with business units in a number of different countries globally. Up unless now, each of the
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Q. Common aims of transfer pricing systems? The common aims of transfer pricing systems Motivate mangers: A transfer price ensures an internal cost is recognised by
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