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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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What are the problems in assessing the potential for synergy from a merger
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Q. Explain about Opportunity cost pricing? Opportunity cost pricing is considered most mathematically correct way of viewing transfer pricing. Reason is that it looks at transf
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After reading through the articles provided in your Assigned Reading and Research, Review one of the articles using the following format with the headings indicated in bold below:
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