The price used to record exchanges of goods and services inside an organization is called a:
A) Transfer price
B) Exchange price
C) Full price
D) Suboptimal price

Question

Quizplus · Accepted Answer

Transfer price is the price used to record exchanges of goods and services inside an organization between different departments or divisions. It is used for managerial accounting purposes and does not reflect the market price. The other options are either not applicable or contradict the purpose of a transfer price.

The Price Used to Record Exchanges of Goods and Services