ECONOMICS

Detailed explanation-1: -Transfer pricing is an accounting practice that represents the price that one division in a company charges another division for goods and services provided.

Detailed explanation-2: -Transfer price, also known as transfer cost, is the price at which related parties transact with each other, such as during the trade of supplies or labor between departments.

Detailed explanation-3: -A transfer price is the price charged when one segment of a company provides goods or services to another segment of the company. Transfer prices are necessary to calculate costs and revenues in cost, profit, and investment centers.

Detailed explanation-4: -In accounting, intercompany transfer pricing is the price charged for goods or services exchanged between companies within the same group of companies. The purpose of transfer pricing is to ensure that each company in a group contributes fairly to the overall profitability of the group.