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Division A produces a product with a variable cost of $5 per unit and an...

Division A produces a product with a variable cost of $5 per unit and an allocated fixed cost of $3 per unit The market price of the product is $15 plus 20% selling cost. Division B currently purchases this product from an external supplier but is going to purchase it from division A for $18 Which of the following methods of transfer pricing is being used?

A.

Market price.

B.

Negotiation-based.

C.

Full absorption cost

D.

Variable cost

IIA IIA-CIA-Part3-3P Summary

  • Vendor: IIA
  • Product: IIA-CIA-Part3-3P
  • Update on: Jul 29, 2025
  • Questions: 488
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