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Question 3 Many organisations use transfer pricing when transferring products between different divisions of the same organisation. You are required to critically discuss the advantages

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Question 3 Many organisations use transfer pricing when transferring products between different divisions of the same organisation. You are required to critically discuss the advantages and disadvantages of two of the following methods: 1) Market based transfer prices; (Note: define, explain gives examples, advantages and disadvantages) 2) Full cost transfer prices; 3) Cost-plus a mark-up transfer prices; and 4) Negotiated transfer prices. * Choose any two of the above four transfer pricing methods: * The first chosen method is worth 17 marks. * The second chosen method is worth 16 marks

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