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: A. dual pricing
- A. dual pricing
- B. functional pricing
- C. congruent pricing
- D. optimal 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.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
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.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The price charged by one subunit to supply products or services to another unit is called _____________?
The maximum freedom for managers and minimum constraints are the main features of ___________?
The per unit opportunity cost to the selling subunit of company, is added into per unit incremental cost is incurred at point of transfer to calculate ____________?
The continuous pressure of reducing the cost of products to be sold, is classified as ____________?
In value chain analysis, the selling and promotion to prospective customers is classified as ___________?
An engineering of products or detailed planning of products or services is called ___________?