The price used to record a sale between divisions within the same vertically integrated company is called the
A) sales price.
B) integrated price.
C) transfer price.
D) bargain price.

Question

Quizplus · Accepted Answer

The price used to record a sale between divisions within the same vertically integrated company is called the transfer price. This price can be a negotiated price or a predetermined price set by management. It is used to ensure that each division is evaluated on its own profitability, rather than being dependent on the performance of other divisions.

The Price Used to Record a Sale Between Divisions Within