Ideally,a transfer price should be less than the price that the receiving business unit would have to pay for that product or service in the marketplace.

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A transfer price is the charge by one unit in the organization for a good or service that it supplies to another unit of the same organization.Ideally,the transfer price reflects the price that the receiving business unit would have to pay for that product or service in the marketplace.

Ideally,a Transfer Price Should Be Less Than the Price That