The price charged for the internal sale of a product between two different divisions of the same company is known as the ________________
A)transfer price.
B)sales price.
C)transfer cost.
D)margin price.

Question

Quizplus · Accepted Answer

The correct term for the price charged for the internal sale of a product between two different divisions of the same company is transfer price. This price is used to determine the cost of goods sold and may impact the profitability of each division involved in the transaction. Transfer cost and margin price are not commonly used terms in this context, while sales price may refer to the price charged to external customers.

The Price Charged for the Internal Sale of a Product