The price one subunit of an organization charges for a product or service supplied to another subunit of the same organization is called
A)an interdepartmental product price.
B)an intermediate product price.
C)a subunit price.
D)a transfer price.
E)a fixed price.

Question

Quizplus · Accepted Answer

The correct term for this scenario is a transfer price. It refers to the price at which one department of an organization sells goods or services to another department within the same organization. This is often used for accounting and cost allocation purposes.

The Price One Subunit of an Organization Charges for a Product