Price charged by one subunit to supply products or services to another unit is called

A. subunit autonomy cost

B. transfer price

C. performance prices

D. effort cost

Answer: Option B

Solution(By Examveda Team)

Price charged by one subunit to supply products or services to another unit is called transfer price. Transfer pricing is an accounting practice that represents the price that one division in a company charges another division for goods or services provided. A transfer price is based on market prices in charging another division, subsidiary, or holding company for services rendered.