Cost of process Rs1,60,000 and profit to be charged on the transfer price is 20% What is the inter process profit?

Rs 32,000
Rs 40,000
Rs 48,000
Rs 54,000

The correct answer is A. Rs 32,000.

The inter-process profit is the profit that a company makes on the sale of goods or services to another part of the same company. It is calculated by multiplying the transfer price by the profit margin. The transfer price is the price at which one part of the company sells goods or services to another part of the company. The profit margin is the percentage of the selling price that is profit.

In this case, the cost of the process is Rs 1,60,000 and the profit margin is 20%. Therefore, the inter-process profit is Rs 32,000.

Option B is incorrect because it is the cost of the process plus the profit margin. Option C is incorrect because it is the cost of the process plus twice the profit margin. Option D is incorrect because it is the cost of the process plus three times the profit margin.