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Q. What do you mean by Dual pricing?
Dual transfer pricing means setting one transfer price for the internal seller and another transfer price for the internal buyer. The basic idea is to encourage trade by creating the most beneficial price for both parties.
The difference between the two transfer prices would need reconciling by head office when preparing the group consolidated financial results. Dual pricing is a similar approach to the opportunity cost approach which is discussed later.
Q. What is Minimum pricing? The minimum transfer price an internal seller would accept will depend on whether it has spare capacity to utilise or not. If spare capacity e
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