Transfer prices are the prices charged
A)for distributing goods from one warehouse to another.
B)for the goods produced by one division to another division that needs those goods.
C)when delivering goods to the customer.
D)when transferring goods to international divisions.

Question

Quizplus · Accepted Answer

Transfer prices are the prices charged for goods produced by one division to another division that needs those goods. This helps in determining the profitability of each division separately.

Transfer Prices Are the Prices Charged