The method of pricing, when two separate pricing methods are used to price, transfer of products from one subunit to another, is called _____________?
Correct answer: D. dual pricing
- A. optimal pricing
- B. functional pricing
- C. congruent pricing
- D. dual pricing
Explanation
Dual pricing is used when the same transfer of goods or services is recorded using two different prices, usually one for each of the transferring subunits. It is designed to support both divisional performance measurement and organizational coordination.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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