Wow! Exactly what I was looking for! I am having my MCS tomorrow and felt like what I have studied on TP is not actually enough and came on UA-cam looking for some explanation. Thank you so much for this Sir! Very well explained.
I have struggled with this topic but your detailed explanation has made it so easy. I literally did a past paper and everything you discussed and exam tip was exactly in there. Thank you so so so much
A is capable of making two products, X and Y. A can sell both products externally as follows: X Y External selling price 80 100 Variable costs 60 70 Contribution p.u. 20 30 A has limited labour available. The labour hours required for each product are X: 5 hours p.u., Y: 10 hours p.u. A has unlimited external demand for both products. Division B requires product Y from Division A. Calculate the minimum transfer price that should be charged by A for supply of Product Y to Division B. And the ans is Contribution $20 $30 Hours 5 10 Contribution per hour $4 $3 Therefore, if no transfers to B, then A would sell exactly and generate $4 per hour contribution. To make transfers of Y worthwhile, A need to charge at least 70 + (10 × 4) = $110 p.u. here my question is, why they didn’t count Y's contribution per hour which is $3??
was veryhelpful ..And u gave very good star points..it was made me more clear in this subject..Thank you sir.. Please put vidioes all relavant cositing topics..
@@CommerceSpecialist I have been showing respect by addressing you as 'Sir,' but in return, you are using inappropriate emojis like 😘. This comes across as unprofessional and disappointing.
Dear sir, why the concept of contribution lost not work when there is an unlimited demand outside but B is also asking for 1k tyres? Explain please! In this case when external demand is exactly same as production capacity, contribution lost is being calculated even B is still asking for 1k tyres. Please explain
Sir why minimum price to be charged in case of no outside demand is $100 covering variable costs only ($120 is termed as ideal price)? Here the department would incur loss of fixed costs they've incurred.
Thanks for help the Students all over the world I would liked an other lesson like this because this topic so complicated I will make the EXAN OF PM IN MARCH
Sir, Thank you so much for this video!! But I have a question . Sir , the situation when outside demand is unlimited and the situation when outside demand is 10,000 units, ain't same ? If outside demand is unlimited and B is asking for 1000 units, shouldn't A ask price 220 to B ( including contribution loss ) ?
Wow! Exactly what I was looking for! I am having my MCS tomorrow and felt like what I have studied on TP is not actually enough and came on UA-cam looking for some explanation. Thank you so much for this Sir! Very well explained.
@@Nim-qq4bp ur welcome dear. All the best for exam.👍🙏
I have struggled with this topic but your detailed explanation has made it so easy. I literally did a past paper and everything you discussed and exam tip was exactly in there. Thank you so so so much
Ur welcome dear🙏😊👍
The greatest teacher of all time.
You are the best costing teacher in world .good luck sir..❤️❤️🙏🙏
Thanks a lot dear🙏👍
All my doubts are clear now... thank you 😊
Your exam point of view is outstanding. ❤
@@kspro7574 thanks dear👍🙏
A is capable of making two products, X and Y.
A can sell both products externally as follows:
X Y
External selling price 80 100
Variable costs 60 70
Contribution p.u. 20 30
A has limited labour available.
The labour hours required for each product are
X: 5 hours p.u., Y: 10 hours p.u.
A has unlimited external demand for both products.
Division B requires product Y from Division A.
Calculate the minimum transfer price that should be charged by A for supply of Product Y to Division B.
And the ans is
Contribution
$20 $30
Hours
5
10
Contribution per hour
$4
$3
Therefore, if no transfers to B, then A would sell exactly and generate $4 per hour contribution.
To make transfers of Y worthwhile, A need to charge at least 70 + (10 × 4) = $110 p.u.
here my question is, why they didn’t count Y's contribution per hour which is $3??
Simple enough to understand. Thank you!
Amazingly and sencerely explained...thank you for the effort sir
Ur welcome dear
Definition of 'Master at work'
Thanks a lot my dear🙏👍
Thank you so much for sharing your knowledge with us 😊
Ur welcome dear
was veryhelpful ..And u gave very good star points..it was made me more clear in this subject..Thank you sir..
Please put vidioes all relavant cositing topics..
@@mohamed_Riham rekevant costing video is already uploaded
the explanation really open the troubled mind
Thanks🤣👍
Sir ,you are brilliant, God bless you for knowledge impact,I now understand better
Thanks a lot dear🙏👍
Tysm for crystal clear explanation
@@RohitKumar-pz4pd thanks dear🙏👍
thank you so much for the video sir. Also your english communication skill is very nice
Thx a lot dear🙏😊
from brunei, really love how you teach and easy to understand. I am wondering if you have a video teaching about ROI, RI and decentralisation.
Sirgee was a refresher for me !!! 👍
🙂
Well explained sir, Thank you so much
Could you please provide a video which explains an example question on this area ?
Thank you very much, your explanation was really helpful…
Ur welcome dear
I need tutoring, for my exam on 19th dec can you plz help, I can pay as well
Simple explanation
thank u sir got my doubt clear
Hello there , Many thanks for your informative video , I learnt alot
Thx dear
This is well explained, keep up the good work
Thanks Davie👍🙏
very well explained sir...
@@NishaYadav-c2j Thanks dear👍😘
@@CommerceSpecialist I have been showing respect by addressing you as 'Sir,' but in return, you are using inappropriate emojis like 😘. This comes across as unprofessional and disappointing.
clear explanation
Sory sir, what about arm's length price method should be explained
That is the normal price u charge, without any discount or special consideration
Thenks
Thank you for your explaination. It was very clear. But where can we find all these rules ? Which sources or resources can you suggest me ? Thanks !
It depends which certification you are persuing
Great Sir, Any lecture on pricing decision?
Thanks for good video transfer price
Please can provide some quations for learn about transfer price
Great explaining sir ❤️
Thx my dear
Why is that the min price to sell to B will be variable cost of $100 when total cost to A is $120 & max price A can sell is $200 in your example?
Dear sir, why the concept of contribution lost not work when there is an unlimited demand outside but B is also asking for 1k tyres? Explain please!
In this case when external demand is exactly same as production capacity, contribution lost is being calculated even B is still asking for 1k tyres. Please explain
Sir! Shall You Add One More Video Regarding To Cost Plus Pricing
sir, why we have taken variable cost as a minimum cost why not adding fixed cost to it?
@@kha6889 fixed cost will incur either ways so not rekevant
Great class. Thanks
excellent
explanation
@@sadafnadeem6742 thanks👍
Thank you❤
Nicely explained
Thx dear
❤🎉🎉 nice presentation
🙏👍
Sir why minimum price to be charged in case of no outside demand is $100 covering variable costs only ($120 is termed as ideal price)? Here the department would incur loss of fixed costs they've incurred.
Good question, is it because the fix prices are an expensive the company is paying them anyway?
I was also confused on this. They would be running a loss wouldn't they? Why would it be the variable and not the Total cost?
@@abuanfal2008 Thanks bro
Relevant Cost.
Fixed cost means it is fixed for the period whether our production is does or not , so it is not taking to consideration.. I think so
Well explained
Thx dear
Thanks for help the Students all over the world
I would liked an other lesson like this because this topic so complicated
I will make the EXAN OF PM IN MARCH
excellent sir
Thanks a lot
Sir, Thank you so much for this video!! But I have a question .
Sir , the situation when outside demand is unlimited and the situation when outside demand is 10,000 units, ain't same ?
If outside demand is unlimited and B is asking for 1000 units, shouldn't A ask price 220 to B ( including contribution loss ) ?
Yes
amazing
very nice thank you
Thanks dear
Sir, if the question maximum price, what the answer? Is that refer of total or else ?
The best price is always market price,
good job
Thx dear
contribution = fixed cost +profit, that means fixed cost is already part of contribution lost. So how can we charge fixed cost again..?
Fixed cost is not part of any cintribution lost dear😊
Regression analysis please
Video is already on my channel on regression
Sir i have a problem in acca APM transfer pricing
??
You Are Proficient Man Jesus Bless You!
Thx dear😍😘
Thank You Sir
Well explained sir
Thanks dear🙏