Which of the following situations gives rise to the need for a transfer price?
A) Two divisions of the same company sell to the same wholesaler
B) Two divisions of the same company sell competing products to the same customer
C) Two divisions of the same company sell to one another
D) Both B and C

Question

Quizplus · Accepted Answer

When one division within a company sells a product or service to another division, it is necessary to establish a sales price for the transfer.

Which of the Following Situations Gives Rise to the Need