Transfer Price

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Dictionary Says

Definition of 'Transfer Price'

The price at which divisions of a company transact with each other. Transactions may include the trade of supplies or labor between departments. Transfer prices are used when individual entities of a larger multi-entity firm are treated and measured as separately run entities. 

Also known as "transfer cost".
Investopedia Says

Investopedia explains 'Transfer Price'

In managerial accounting, when different divisions of a multi-entity company are in charge of their own profits, they are also responsible for their own "Return on Invested Capital". Therefore, when divisions are required to transact with each other, a transfer price is used to determine costs. Transfer prices tend not to differ much from the price in the market because one of the entities in such a transaction will lose out: they will either be buying for more than the prevailing market price or selling below the market price, and this will affect their performance.
Search results for

'Transfer Price'

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    ... Domestic corporations have multiple ways to obtain a transfer price from one subsidiary
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    ... company for terminal funding, you can shop for others and then transfer the money ...
    increase is tied to an unknown variable, such as Consumer Price Index (CPI). ...
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    ... Use the difference, principle and interest, to determine the purchase price based
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    ... Williams is offering a better price, but Energy Transfer's offer could be superior
    on an after-tax basis and the option of getting paid in ETE or ETP shares ...
  • Understanding The Insurance Transfer-For-Value Rule

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    ... If the final transfer qualifies as an exception, then the proceeds will be tax-free. ...
    Find out what you can do to get the coverage you need for the right price. ...
  • Practical And Affordable Hedging Strategies

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    ... Then, identify the transactions that can cost effectively transfer this risk. As
    a rule, longer term put options with a lower strike price provide the best ...
  • Don't Let Brokerage Fees Undermine Your Returns

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    ... do is transfer them over for the duration. Not All Orders Are the Same You may or
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  • Series 6 Study Guide - Investment Companies - Structure ...

    http://www.investopedia.com/exam-guide/finra-series-6/investment-companies/structure-management-mutual-funds.asp
    ... The board will also approve and hire the investment advisor, transfer agent and ... the
    shares to the public at the full public offering price, either through ...
  • Series 6 Study Guide - Investment Securities - Corporate ...

    http://www.investopedia.com/exam-guide/finra-series-6/investment-securities/corporate-securities-common-stock.asp
    ... in the increased value of company stock, as reflected in the stock price. ... Right of
    Transfer: A shareholder may freely transfer shares by selling them, giving ...
  • Warrants: A High-Return Investment Tool

    http://www.investopedia.com/articles/04/021704.asp
    ... warrant. The payment of the strike price results in a transfer of the specified
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