An) _____ is the charge by one unit in the organization for a good or service that it supplies to another unit of the same organization.
A) market control
B) transfer price
C) outsource item
D) bureaucratic control
E) balanced scorecard

Question

Quizplus · Accepted Answer

A transfer price is the charge by one unit in an organization for a good or service that it supplies to another unit of the same organization. This is used to determine the cost of production for the supplying unit and the cost of procurement for the receiving unit. It is an internal pricing mechanism used for the purpose of calculating profits, usually within a decentralized organization where different divisions operate as separate profit centers.

An) _____ Is the Charge by One Unit in the Organization