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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:
Suggested Answer: A
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37 comments · newest first
WI
Willodean
11 months ago
Wait, are we sure this is how it works? Sounds confusing!
PA
Paz
11 months ago
Seems odd that both divisions record different prices.
RA
Raina
11 months ago
Full cost pricing is a different concept, right?
TO
Tony
12 months ago
I thought it was called a two part tariff system?
GE
Gearldine
12 months ago
That's definitely a dual pricing system!
EL
Elroy
12 months ago
I'm leaning towards dual pricing too, but I wonder if there's a chance it's marginal cost plus pricing.
BA
Barney
1 year ago
I feel like we covered full cost pricing systems, but they don't really fit this scenario.
GE
Gerald
1 year ago
I remember discussing two-part tariff systems in class, but I don't think that's the right answer here.
LO
Loreta
1 year ago
I think this might be related to dual pricing, but I'm not completely sure. It sounds familiar from our last practice exam.
DO
Douglass
1 year ago
I'm pretty confident the answer is A, "Dual pricing system." The question clearly states that the selling and purchasing divisions record different prices, which is the definition of a dual pricing system.
NO
Novella
1 year ago
Okay, I've got this. The question is describing a "dual pricing system" where the selling and purchasing divisions record different prices for the same transaction. That's the correct answer, choice A.
JE
Jerry
1 year ago
Hmm, I'm a bit confused on this one. I know transfer pricing has to do with how divisions price goods and services between each other, but I'm not sure which of these options specifically describes the situation described in the question.
ME
Merlyn
1 year ago
I think this is asking about a transfer pricing system where the selling and purchasing divisions record different prices for the same transaction. The key is to identify the term for this type of system.
CH
Chara
1 year ago
Dual pricing, dual personalities. It's all the same to me as long as I pass this exam!
DE
Derrick
1 year ago
C) Full cost pricing system.
RE
Renea
1 year ago
B) Two part tariff system.
FR
Frank
1 year ago
A) Dual pricing system.
GR
Gregoria
1 year 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.
TI
Tish
1 year ago
Yeah, it helps to ensure each division is evaluated fairly based on their performance.
LI
Ligia
1 year ago
I agree, it makes sense for both divisions to have different prices.
ED
Edda
1 year ago
I think A) Dual pricing system is the correct answer.
GO
Golda
2 years 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.
TE
Terrilyn
1 year ago
D) Marginal cost plus pricing system.
FR
Franklyn
1 year ago
C) Full cost pricing system.
VI
Virgina
1 year ago
B) Two part tariff system.
KA
Katie
1 year ago
A) Dual pricing system.
GE
Gerald
1 year ago
Exactly, it's a dual pricing system where different prices are recorded by the selling and purchasing divisions.
GI
Gilma
1 year ago
A) Dual pricing system.
ZO
Zona
2 years ago
B) Two part tariff system? Really? That doesn't seem to fit the description at all. I'm going with A.
JA
Janey
2 years 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.
VI
Vivan
1 year ago
I'm pretty sure it's A) Dual pricing system as well.
WI
Willis
1 year ago
No, I believe it's B) Two part tariff system.
ST
Steffanie
1 year ago
I think it's D) Marginal cost plus pricing system.
DE
Derick
1 year ago
I agree, it must be A) Dual pricing system.
MA
Margarita
2 years 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.
XO
Xochitl
2 years ago
I agree with India, because in dual pricing system, both divisions record different prices for the same transaction.
IN
India
2 years ago
I think the answer is A) Dual pricing system.