A transfer price exists when two segments of the same organization sell _____.
A)a product to the same customer
B)a service to each other
C)a product in a foreign country
D)the same service to competitors

Question

Quizplus · Accepted Answer

Transfer prices exist when one segment of an organization sells goods or services to another segment within the same organization. Therefore, option B is the correct answer. Options A, C, and D do not involve transactions between segments of the same organization.

A Transfer Price Exists When Two Segments of the Same