The value assigned to a transaction where goods are bought by one unit of an organization from another unit of the same organization known as which of the following?
A)sales price.
B)intercompany cost basis.
C)transfer price.
D)generally accepted price.

Question

Quizplus · Accepted Answer

The value assigned to a transaction where goods are bought by one unit of an organization from another unit of the same organization is known as the transfer price. This is the price determined by the management of the organization to transfer goods or services between its different units, and is often used for internal record-keeping and cost allocation purposes.

The Value Assigned to a Transaction Where Goods Are Bought