Question

A price on goods and services sold by one member of a corporate family to another, such as from a parent to its subsidiary in a foreign country, is known as__________

Answer 1

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Answer 2

Transfer pricing is a price on good a and services sold by one member of a corporate family to another

Explanation:

• Transfer pricing is an accounting exercise that represents the price that one department in a company expenses any other department for goods and offerings provided.

• Transfer price, additionally referred to as transfer cost, is the price at which associated events transact with every other, including at some point of the alternate of components or labor among departments.
• Generally, organizations can decide transfer prices 3 exclusive ways: marketplace-based switch charges, cost- primarily based totally transfer charges, and negotiated transfer prices.
• Although every technique provides a exclusive “answer,” their commonality is that transfer charges constitute an intracompany marketplace mechanism.

Answer = Transfer pricing.