When one unit charges another unit in the same company for goods it ships to its foreign subsidiaries, the charge is called a(n)________.
A) original price
B) transfer price
C) margin price
D) break-even price
E) customer value price

Question

Quizplus · Accepted Answer

The charge mentioned in the question is a transfer price, which is a cost that is assigned to goods and services transferred between different units of the same company. This type of pricing is used to determine the cost of transactions between different divisions of a company and is often used in international trade. The other options listed are not relevant to this scenario.

When One Unit Charges Another Unit in the Same Company