Examlex
Division A produces a component and wants to sell it to Division B.Which of the following best describes the relationship of the transfer price to Division A and Division B?
Contract Price
The total financial compensation agreed upon by all parties involved in a contract for the sale, purchase, or delivery of goods or services.
Market Price
The present cost for purchasing or selling an asset or service in a specific market.
Consequential Damages
Special damages that compensate for a loss that is not direct or immediate (for example, lost profits). The special damages must have been reasonably foreseeable at the time the breach or injury occurred in order for the plaintiff to collect them.
Liability
A legal responsibility or obligation, particularly in the context of debts or torts.
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