Which of the following methods of invoicing goods to branches facilitate easy checks on the activities of branches?

A. cost price
B. fixed percentage on cost
C. selling price
D. invoice price

Correct Answer:

Option D – invoice price

Explanation

Invoice Price Method Branch Accounting. In branch accounting, the head office sends the goods to the branch on the invoice price instead of the cost price because with this, the company can hide its profit margin from branch employees. In the invoice price, there are two prices that will be included on is cost price and second is profit %.