The transaction amount for one unit of goods when the transaction occurs between divisions within the same company is the ________.
A) transfer price
B) opportunity cost
C) variable cost
D) sales price

Question

Quizplus · Accepted Answer

When a transaction occurs between divisions within the same company, the price at which one division transfers goods to another division is called the transfer price. This price is not based on market prices, but rather on the internal cost structure of the company. The other options (B,C,D) do not accurately describe the price for transactions between divisions within the same company.

The Transaction Amount for One Unit of Goods When the Transaction