____ is the price at which an intermediate good or service is transferred from the selling to the buying division within the same firm.
A) Incremental price
B) Marginal price
C) Full-cost price
D) Transfer price
E) none of the above

Question

Quizplus · Accepted Answer

Transfer price is the price at which goods or services are transferred from one division to another division within the same firm. It is used to determine the profitability of each division and to ensure that the goods or services are transferred at a fair market value. Transfer pricing is an important issue in multinational companies, as it affects tax liabilities and can be used to shift profits between subsidiaries based in different countries.

____ Is the Price at Which an Intermediate Good or Service