JAMB Accounting Past Questions & Answers - Page 53

262.
263.

In departmental accounting, which is not a transfer pricing_________

A.

Cost based transfer price

B.

Market based transfer pricing

C.

Dual pricing system

D.

Peak pricing

Correct answer is D

No explanation has been provided for this answer.

264.

When goods are sent to branch at cost plus mark up, it means that the branch should sell at_____________

A.

Price above or below the stipulated price

B.

Any price but not below the transfer price

C.

Cost price

D.

A price that is equal to the mark up

Correct answer is A

Cost plus mark up is a pricing strategy in which the selling price is determined by adding a specific amount mark up to a product unit cost

 

265.

The amount paid by the new partner on admission as a compensation for the reputation built up by old partners is a

A.

Bonus

B.

Goodwill

C.

Premium

D.

Commission

Correct answer is B

Goodwill is the excess of the purchase consideration over the total value of an entity