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Transfer Price Definition and Explanation PDF Download

Learn Transfer Price definition in marketing with explanation to study “What is Transfer Price”. Study transfer price explanation with marketing terms to review marketing course for online MBA programs.

Transfer Price Definition:

  • Price a company charges another unit in the company for goods it ships to foreign subsidiaries.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong



Transfer Price Explanation:

Transfer estimation is the setting of the cost for merchandise and ventures sold between controlled (or related) legitimate elements inside an undertaking. For instance, if a backup organization offers products to a parent organization, the expense of those merchandise paid by the parent to the auxiliary is the exchange cost. Lawful elements considered under the influence of a solitary enterprise incorporate branches and organizations that are completely or dominant part claimed at last by the parent company. Certain locales believe substances to be under regular control on the off chance that they share relatives on their sheets of chiefs. Move valuing can be utilized as a benefit designation technique to trait a worldwide partnership's net benefit (or shortfall) before duty to nations where it works together. Move estimating brings about the setting of costs among divisions inside an endeavor.

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