A transfer price exists when two segments of the same organization sell ________.
A) a product to the same customer
B) a product to each other
C) a product in a foreign country
D) the same service to customers

Question

Quizplus · Accepted Answer

A transfer price exists when two segments of the same organization sell a product to each other. It refers to the price at which goods or services are transferred between different units or divisions of the same company. This is done for accounting and tax purposes and can have an impact on the profitability of each segment.

A Transfer Price Exists When Two Segments of the Same