Transfer prices are the prices charged
A)for distributing goods from one warehouse to another.
B)for the goods produced by one division to another division that needs these goods.
C)when delivering goods to the customer.
D)when transferring goods to international divisions.

Question

Quizplus · Accepted Answer

Transfer prices are the prices charged for goods or services transferred from one division or department to another within the same company. Therefore, option B is the correct answer as it mentions the transfer of goods between divisions. The other options are not related to transfer pricing.

Transfer Prices Are the Prices Charged