The dollar amount used by one division which supplies a good or a service to another division within a company is called a:
A)Market price.
B)Transfer price.
C)Fair price.
D)Agreed-upon price.

Question

Quizplus · Accepted Answer

The dollar amount used by one division which supplies a good or a service to another division within a company is called a transfer price. This price is agreed upon by the two divisions and is often used for internal accounting purposes. It may or may not be the same as the market price or fair price, but it is an agreed-upon price between the two divisions.

The Dollar Amount Used by One Division Which Supplies a Good