Which of the following methods of invoicing goods to branches facilitate easy checks on the activities of branches?
- cost price
- fixed percentage on cost
- selling price
-
invoice price
The correct answer is: D
Explanation
Invoice Price Method Branch Accounting. In branch accounting, head office sends the goods to branch on the invoice price instead of cost price because with this, company can hide his profit margin from branch employees. In the invoice price, there are two prices will be included on is cost price and second is profit %.