The Amount Charged by One Segment of an Organization for a Product

question 98

Short Answer

The amount charged by one segment of an organization for a product or service that it supplies to another segment of the same organization

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Definitions:

Revolving Credit Agreement

A credit facility allowing a borrower to withdraw, repay, and redraw loans repeatedly up to a certain credit limit.

Commitment Fee

A banking fee charged by lenders to secure a line of credit or a loan, often paid by borrowers to guarantee access to credit.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a benchmark for other interest rates.

Effective Interest Rate

The real rate of interest earned or paid on a loan or investment, accounting for the effect of compounding over the period.