The price charged by one unit in an organization for a good or service that it supplies to another unit in the same organization is referred to as a(n):
A) substitute price.
B) transfer price.
C) department price.
D) organizational price.
E) budget price.

Question

Quizplus · Accepted Answer

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.

The Price Charged by One Unit in an Organization for a Good