CIMA Exam CIMAPRO19-P02-1 Topic 1 Question 10 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 10
Topic #: 1

Which TWO of the following are reasons why cost-based approaches to transfer pricing are often used in practice?

AThe buying division will want to maximize its profits.

BThe transferring division will want to maximize its profits.

CBecause the external market is imperfect.

DBecause there is often no external market for the product that is being transferred.

EThe approach allows the organization to cover all the costs.

Show Suggested Answer

Suggested Answer: C, D

by Carey at May 04, 2022, 07:15 PM

Limited Time Offer

25%

Off

Contribute your Thoughts:

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!