=+Variable cost per kilogram of raw diamonds Fixed cost per kilogram of raw diamonds Market price per

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=+Variable cost per kilogram of raw diamonds Fixed cost per kilogram of raw diamonds Market price per kilogram of raw diamonds etar xaT %81 Variable cost per kilogram of polished diamonds Fixed cost per kilogram of polished diamonds Market price per kilogram of polished diamonds etar xaT %03 South African Mining Division Australian Processing Division 700 AUD 560 rand 1540 rand 3150 rand 150 AUD 5000 AUD 754 Chapter 19: Management control systems, transfer pricing and multinational considerations M19_HORN3377_02_LT_C19.indd 754 2/09/13 4:05 PM Required 1 Calculate the annual pre-tax operating profit, in Australian dollars, of each division under the following transfer-pricing methods:

(a) 250% of full cost and

(b) market price.

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Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

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