Difference between revisions of "Transfer price"
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:[[Transfer price]]. Price one subunit (department or division) charges for a product or service supplied to another subunit of the same organization. | :[[Transfer price]]. Price one subunit (department or division) charges for a product or service supplied to another subunit of the same organization. | ||
| − | [[Category: Marketing Management]][[Category: Articles]] | + | [[Category: Marketing Management]][[Category: Articles]][[Category: Accounting]] |
Revision as of 14:55, 11 July 2020
Transfer price is the price a company charges another unit in the company for goods it ships to foreign subsidiaries.
Definition
According to Marketing Management by Keller and Kotler (15th edition),
- Transfer price. The price a company charges another unit in the company for goods it ships to foreign subsidiaries.
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Transfer price. Price one subunit (department or division) charges for a product or service supplied to another subunit of the same organization.
