CIMA Advanced Management Accounting P2 Question # 18 Topic 2 Discussion

CIMA Advanced Management Accounting P2 Question # 18 Topic 2 Discussion

P2 Exam Topic 2 Question 18 Discussion:
Question #: 18
Topic #: 2

Which of the following statements is correct in respect of the key feature of dual pricing?


A.

The selling price recorded by the selling division is higher than the cost recorded by the receiving division.


B.

Internal customers are offered trade discounts depending on the number of units they purchase.


C.

Internal transfers are priced at marginal cost and a lump sum payment is made subsequently to contribute to fixed costs.


D.

Internal customers are charged a lower price than external customers to reflect savings in distribution costs.


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