CIMA Exam CIMAPRO19-P02-1 Topic 5 Question 105 Discussion

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

Question #: 105
Topic #: 5

In an organization's transfer pricing system the selling division and the purchasing division each record a different price for the same transaction.

This is known as a:

ADual pricing system.

BTwo part tariff system.

CFull cost pricing system.

DMarginal cost plus pricing system.

Show Suggested Answer

Suggested Answer: A

by Jeffrey at Jan 09, 2025, 04:51 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Chara

2 months ago

Dual pricing, dual personalities. It's all the same to me as long as I pass this exam!

upvoted 0 times

Derrick

13 days ago

C) Full cost pricing system.

upvoted 0 times

...

Renea

21 days ago

B) Two part tariff system.

upvoted 0 times

...

Frank

1 months ago

A) Dual pricing system.

upvoted 0 times

...

Gregoria

2 months ago

D) Marginal cost plus pricing system? I must be missing something here. A) Dual pricing system is the only answer that makes sense to me.

upvoted 0 times

Tish

15 days ago

Yeah, it helps to ensure each division is evaluated fairly based on their performance.

upvoted 0 times

...

Ligia

16 days ago

I agree, it makes sense for both divisions to have different prices.

upvoted 0 times

...

Edda

18 days ago

I think A) Dual pricing system is the correct answer.

upvoted 0 times

...

Golda

2 months ago

Haha, C) Full cost pricing system? What does that have to do with different prices being recorded? This is clearly a dual pricing situation.

upvoted 0 times

Terrilyn

17 days ago

D) Marginal cost plus pricing system.

upvoted 0 times

...

Franklyn

29 days ago

C) Full cost pricing system.

upvoted 0 times

...

Virgina

1 months ago

B) Two part tariff system.

upvoted 0 times

...

Katie

2 months ago

A) Dual pricing system.

upvoted 0 times

...

Gerald

2 months ago

Exactly, it's a dual pricing system where different prices are recorded by the selling and purchasing divisions.

upvoted 0 times

...

Gilma

2 months ago

A) Dual pricing system.

upvoted 0 times

...

Zona

3 months ago

B) Two part tariff system? Really? That doesn't seem to fit the description at all. I'm going with A.

upvoted 0 times

...

Janey

3 months ago

I think the answer is A) Dual pricing system. It makes sense that the selling and purchasing divisions would record different prices for the same transaction.

upvoted 0 times

Vivan

1 months ago

I'm pretty sure it's A) Dual pricing system as well.

upvoted 0 times

...

Willis

1 months ago

No, I believe it's B) Two part tariff system.

upvoted 0 times

...

Steffanie

1 months ago

I think it's D) Marginal cost plus pricing system.

upvoted 0 times

...

Derick

2 months ago

I agree, it must be A) Dual pricing system.

upvoted 0 times

...

Margarita

3 months ago

I'm not sure, but I think it could also be D) Marginal cost plus pricing system, where the selling division adds a markup to the marginal cost.

upvoted 0 times

...

Xochitl

3 months ago

I agree with India, because in dual pricing system, both divisions record different prices for the same transaction.

upvoted 0 times

...

India

3 months ago

I think the answer is A) Dual pricing system.

upvoted 0 times

...