CIMA Exam CIMAPRO19-P02-1 Topic 1 Question 9 Discussion

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

Question #: 9
Topic #: 1

If transfer prices are set at variable costs, the supplying division does not cover its fixed costs.

Which of the following does NOT resolve this problem?

AEach division can be given a share of the overall contribution earned by the organization.

BA system of dual pricing can be adopted.

CReduce the level of fixed costs.

DCentral management can impose a range within which the transfer price should fall.

Show Suggested Answer

Suggested Answer: C

by Rolland at May 05, 2022, 05:27 AM

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