Today we have a question relating to the new 2019 syllabus for P2.
The question was:
Two departments operate a dual transfer pricing policy. Department A has variable costs of £15/unit and operates a cost plus mark up at 30%. Department B records these purchases for £17/unit.
This question relates to ‘C: Managing and Controlling the Performance of Organisational Units’ and is a slightly different version of the question in one of our free mock exams.
The correct answer was…
Department A is recording each sale for £19.50 (£15 x 1.3), and Department B is recording the purchase for £17, a difference of £2.50 per unit.
For more free questions use our Free CIMA Mock Exams for the 2019 syllabus use the menu above to access our little shop, at the same time you’ll have the option to upgrade to our + package which includes 50% more CIMA Mock Exam style questions, feedback and both revision and timed assessment modes plus much more.