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Transfer Price
The price at which goods and services are transferred between departments or subsidiaries of the same company.
Variable Cost
Costs that vary directly with the level of production or sales volume, such as raw materials or direct labor.
General Transfer-Pricing Formula
A method or set of guidelines used to determine the price at which goods and services are transferred between departments or divisions within the same company.
Transfer Price
The cost at which products and services are exchanged among departments within the same corporation.
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