What best describes a transfer ?price


Problem: Which of the following best describes a transfer ?price?

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A. It is the price charged by an organization when it transfer goods to another organization in lieu of services provided by it.

B. It is the price one subunit charges for a product or service supplied to another subunit of the same organization.

C. It is the price that is charged by a department of an organization when it sells its goods to its competitors.

D. It is the price that is to be used while calculating revenue from sales to customers for tax purposes.

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Accounting Basics: What best describes a transfer ?price
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