Transfer prices are ________.
A) revenues of the segment producing the transferred product
B) costs of the segment acquiring the transferred product
C) costs of the segment producing the transferred product
D) revenues of the segment producing the transferred product and costs of the segment acquiring the transferred product

Question

Quizplus · Accepted Answer

Transfer prices refer to the revenues generated by the segment that produces and transfers the product, as well as the costs incurred by the segment that acquires the transferred product. Therefore, choice D best represents transfer prices.

Transfer Prices Are ________