Concept:In branch accounting, the price used to invoice goods from head office determines how easily branch stock and sales can be controlled.
Explanation:When goods are invoiced at selling price, the branch records them at the exact price customers will pay.
Therefore, the head office can compute the expected sales proceeds from the goods supplied.
At the end of the period, the head office compares the goods sent with the branch’s sales plus closing stock.
Any shortage or surplus becomes obvious, so the branch’s activities are closely checked.
Invoicing at cost price or invoice price does not give this direct control because normal selling prices are not shown in the branch records.
Answer:A. Selling price