Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 10

What are the objectives of measures used to evaluate the financial performance of investment centers?

Step 1 of 2

Transfer price

Transfer price refers to price at which goods are sold from one department to another department. There are number of methods and policies used by company within the department in order to determine the price to be charge for intercompany sales.