CIMA Exam CIMAPRO19-P02-1 Topic 5 Question 105 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 105
Topic #: 5

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:

ADual pricing system.

BTwo part tariff system.

CFull cost pricing system.

DMarginal cost plus pricing system.

Show Suggested Answer

Suggested Answer: A

by Jeffrey at Jan 09, 2025, 04:51 PM

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Golda

8 days 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.

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Zona

13 days ago

B) Two part tariff system? Really? That doesn't seem to fit the description at all. I'm going with A.

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Janey

16 days 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.

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Margarita

19 days 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.

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Xochitl

23 days ago

I agree with India, because in dual pricing system, both divisions record different prices for the same transaction.

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India

25 days ago

I think the answer is A) Dual pricing system.

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