CIMA P3: How to Calculate a Transfer Price – Matt’s Complete Guide

As you know on my blog, much of the content I create is in direct response to student questions, problems or challenges and this post is no different. A number of people have been left confused when it comes to understanding the calculations needed when it comes to determining a transfer price. This is nothing […]

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CIMA P3: Transfer Pricing Revision Questions

Okay, so hopefully you’ve read my guide on transfer pricing, so now let’s test your understanding by setting you a few questions to answer. These questions are taken from the Astranti CIMA P3 Revision Kit. There are other providers out there such as Kaplan, Acorn and BPP but Astranti is the one I have experience […]

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CIMA P3: Transfer Pricing Mock Exam Questions

Hopefully you’ve been through my transfer pricing guide and have attempted the revision questions to test your understanding. Now we come to the crunch. Can you answer exam standard questions? Well, let’s find out by tackling these two questions from Astranti’s free CIMA P3 mini mock exam. Once you’ve attempted them, you can click on […]

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CIMA P3: Transfer Pricing Revision – Solutions

Solution to question 1: Answer $40 The transfer price will be $40 as we assume marginal cost is equal to variable cost and that there is excess capacity unless stated otherwise.  Solution to question 2: i) Minimum Transfer Price Answer $9 The minimum transfer price will usually be marginal cost unless there is an opportunity […]

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CIMA P3: Transfer Pricing Mock Exam Questions – Solutions

Solution to question 1: Answer £8 To maximise group profit we need to set the transfer price at the lowest price available. In most cases, and in this scenario, the lowest transfer price is marginal cost which is given as £8 per unit in the question. Solution to question 2: i) Quantity to be sold […]

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