transfer price

Popular Terms
Price charged by individual entities for goods or services supplied to one another in multi-department, multi-office, or multinational firms. Transfer price policy is generally aimed at (1) evaluating financial performance of different business units (profit centers) of a conglomerate, and/or to (2) shift earnings from a high tax jurisdiction to a low-tax one. Tax authorities usually frown upon transfer pricing aimed at tax avoidance and insist that each internal part of the firm deals with the other on 'arm's length' (market price) basis. Also called transfer cost.

Use 'transfer price' in a Sentence

The transfer price was quoted higher than expected so we reached out to our partner and realized it was a misunderstanding.
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I had to know the transfer price, because I was in charge of keeping track of all of our finances in the company.
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Yesterday I changed my cell phone service from T-Mobile to Verizon, but in order to accomplish this, Verizon included a transfer price for this service.
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