Goods are marked on invoice price to achieve the following objectives:
(i) To keep secret from the branch manager, the cost price of the goods and profit made, so
that the branch manager may not start a rival and competitive business with the concern;
and
(ii) To have effective control on stock i.e stock at any time must be equal to opening stock
plus goods received from head office minus sales made at branch.
(iii) To dictate pricing policy to its branches, as well as save work at branch because prices
have already been decided.
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