transfer pricing

Popular Terms
When costs need to be transferred from one department of a company to another department of a company. For example, the cost for lighting a building is transferred to an administrative department instead of a construction department.

Use 'transfer pricing' in a Sentence

Sometimes you must use transfer pricing when you need to get more money funneling into a certain area of your company.
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Because this department no longer has the necessary funds to cover its current demands, the company will be transfer pricing energy costs to another department.
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We were going to trade with the other group, so we had to use a practice called transfer pricing that would ensure our transaction was fair.
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