The price that one subsidiary charges another subsidiary of internal good transfers is called an:
A) Transfer price
B) Transaction price
C) Strike price
D) Subsidiary price

Question

Quizplus · Accepted Answer

The price charged by one subsidiary to another subsidiary for internal good transfers is known as a transfer price. This price is important for determining the profitability of each subsidiary and for evaluating the performance of the entire company.

The Price That One Subsidiary Charges Another Subsidiary of Internal