Transfer price

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.

According to the Corporate Strategy by Lynch (4th edition),

Transfer price. The price for which one part of an organization will sell its goods to another part in a multidivisional organization.

According to Managerial Accounting by Braun, Tietz (5th edition),

Transfer price. The price charged for the internal sale of product between two different divisions of the same company, 597-599 Transferred-in costs. Costs incurred in a previous process that are carried forward as part of the product's cost when it moves to the next process, 264,272 Transportation, 198, 199 Trash audits, 258, 899, 900 Treasurer. The position responsible for raising the firm's capital and investing funds.