Hello! Thank you for this very informative video. I'm having an interviewer with one of the Big4s next week for a junior transfer pricing job. This really helped! :)
May I please ask you in your last two examples why you ignoring the production fixed cost? FC is realted to production isn't so this should be included right? I understand that if the FC is general we can exclude but in this situation FC is related to production.
Thankyou for the video Ma'am. Ma'am one thing that I'd like to ask is that in case of a Cost based approach to T/Price. Should we use Standard Cost or Actual Cost, because the study text of Kaplan mentions that it should be Standard Cost. However i was going through ACCA's technical article on T/Pricing and it seems the article suggests that it should be actual cost because it mentions. "There is a little incentive for Division A to be efficient if all Neel costs are covered by the Transfer price. Inefficiency in Division A (Selling Division) will be passed on to Division B (Buying Division).
@@jotuffillacca I was able to follow through till the end of the Video. The 24min video was able to make me fully understand transfer pricing better than the hundreds of hours I put in before. Just shows how simply you explained everything, not all tutors can do that! Again I am thankful for all three (PM) videos you uploaded.
@@omomeidontaya3143 Revision is still at early stages so revision marks aren’t so high but hopefully with practice I will get there before the exam day. Thanks for asking how’s yours going?
