The amounts charged for goods and services exchanged between two divisions are known as:
A) opportunity costs.
B) transfer prices.
C) standard variable costs.
D) residual prices.
E) target prices.

Question

Quizplus · Accepted Answer

Transfer prices are the amounts charged for goods and services exchanged between divisions within the same company. This internal pricing mechanism allows for the valuation of transactions between different business units of the same organization.

The Amounts Charged for Goods and Services Exchanged Between Two