The pricing of the intermediate goods sold between the two subdivisions of the same company is knows as
A) price discrimination.
B) dumping.
C) transfer pricing.
D) transfer discrimination.

Question

Quizplus · Accepted Answer

Transfer pricing refers to the pricing of goods, services, and intangibles between related parties, such as divisions or subsidiaries within the same company. It is a common practice in multinational corporations to allocate revenue and expenses between different divisions or countries.

The Pricing of the Intermediate Goods Sold Between the Two