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.
