Can someone solve all the
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Homework Answers
Solution:
A: a. proposal 2 maximises the profit for department S
b. current proposal maximises the profit for department P
c. proposal 1 maximises the profit for multifaceted ltd.
B there are lots of transfer pricing methods like
- Comparable uncontrolled price (CUP) method.
- Resale price method
- Cost plus method
- Transactional net margin method
- Transactional profit split method.
as per the above situation in the multifaceted ltd. it can set any method but the the 5th one is considered to be best i.e. Transactional profit split method.
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Can someone solve all the
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can clearly complete the answers ?
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