Which of the following refers to the price charged for products sold between a company's divisions or subsidiaries?
A) dual pricing
B) transfer price
C) price skimming
D) arm's length price

Question

Quizplus · Accepted Answer

Transfer price refers to the price charged for products or services transferred between different departments or subsidiaries of the same company. Dual pricing is the practice of charging different prices to different customers for the same product or service. Price skimming is a pricing strategy where a company charges a high price for its product during the initial stage of its launch. An arm's length price refers to the fair market value of a product or service charged by unrelated parties in a transaction. Therefore, the correct answer is B.

Which of the Following Refers to the Price Charged for Products