CIMA P2 Syllabus C. Managing Performance Of Organisational Units - Transfer Pricing - Perfect Market - Notes ^{3 / 5}

Remember:

This is one with no limitations in supply and demand

Perfect Market - but Division A has Spare Capacity

• Anything above or equal to A's Variable Cost

Perfect Market - but Division A has NO Spare Capacity

• The Market Price is all A would accept (as it would otherwise sell to the external market) - less any savings from selling internally