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transfer price

   Also found in: Acronyms 0.01 sec.
Transfer price
The price at which one unit of a firm sells goods or services to another unit of the same firm.
transfer price
The price at which an item is transferred internally between two units of the same company. An oil company engaged in drilling, refining, and marketing must determine the price of the product as it is passed through the chain from oil field to service station in order to determine the profitability of each stage.


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