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Cost of process Rs1 60 000 and profit to be charged...

This question belongs to Commerce Costing
Costing
?

Cost of process Rs1,60,000 and profit to be charged on the transfer price is 20% What is the inter process profit?

Answer & Solution
Correct Answer: Option B
Inter process profit
= (160000 / (100% - 20%) - 160000)
= 200000 - 160000 = Rs. 40000.
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1 Comment
Naaresh Kumar
Naaresh Kumar 8 years ago
1/5 on sale or transfer = 1/4 on cost
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