The Price Charged for the Internal Sale of a Product

question 107

Multiple Choice

The price charged for the internal sale of a product between two different divisions of the same company is known as the ________________

• A)transfer price.
• B)sales price.
• C)transfer cost.
• D)margin price.

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Definitions:

World Price

The global market rate at which a good can be bought or sold, influenced by supply and demand on an international scale.

United States

A country in North America consisting of 50 states and a federal district, known for its significant influence on world economy, politics, and culture.

Deadweight Loss

The loss of economic efficiency that can occur when equilibrium for a good or a service is not achieved or is not achievable.

Tariff

A levy placed on goods and services brought into a country to raise their cost and enhance the competitiveness of homegrown products.