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A Transfer Price Is the Price Charged When One Segment

question 14

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A transfer price is the price charged when one segment of a company provides goods or services to another segment of the company.


Definitions:

Conditions

Specific requirements, provisions, or circumstances that affect an agreement, process, or functioning of a system.

Job Evaluation Method

A systematic process used to assess the relative worth of jobs within an organization for the purpose of establishing equitable salary levels and pay scales.

Benchmark Jobs

Positions that are common across industries, used to make comparisons for purposes of salary surveys and establishing pay scales.

Pay Grade

A step or level within a pay structure that determines the amount of compensation an employee receives.

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