Page 209 - 5.2 i. Manac Costing ITC Summarised Notes
P. 209
TRANSFER PRICING
Minimum Transfer Price
The minimum transfer price is the minimum that the
transferring/selling division can sell for without
making a loss.
Minimum transfer price =
Variable costs of the transferring division
Less: Variable costs saved on internal transfers
Add: Incremental fixed costs
Add: Opportunity cost
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