The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with a subsidiary and holding company or sisters’ company is referred to as transfer price. The value of the lowest transfer price acceptable by the A Division.

Question

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Answer 1

Question

Chapter 11, Problem 3E

1a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with a subsidiary and holding company or sisters’ company is referred to as transfer price.

The value of the lowest transfer price acceptable by the A Division.

1b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

1c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices and to explain will the division managers will voluntarily agree to the transfer or not.

1d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

Whether the transfer should take place or not.

2a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the lowest transfer price acceptable by the A Division.

2b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

2c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices and to explain will the division managers voluntarily agree to the transfer or not.

2d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services.

Whether the transfer should take place or not.

3a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the lowest transfer price acceptable by the A Division.

3b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

3c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices to explain will the division managers will voluntarily agree to the transfer or not.

3d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

Whether the transfer should take place or not.

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Answer 2

Question

Chapter 11, Problem 3E

1a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with a subsidiary and holding company or sisters’ company is referred to as transfer price.

The value of the lowest transfer price acceptable by the A Division.

1b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

1c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices and to explain will the division managers will voluntarily agree to the transfer or not.

1d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

Whether the transfer should take place or not.

2a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the lowest transfer price acceptable by the A Division.

2b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

2c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices and to explain will the division managers voluntarily agree to the transfer or not.

2d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services.

Whether the transfer should take place or not.

3a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the lowest transfer price acceptable by the A Division.

3b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

3c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices to explain will the division managers will voluntarily agree to the transfer or not.

3d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

Whether the transfer should take place or not.

Expert Solution & Answer

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Answer 3

Question

Chapter 11, Problem 3E

1a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with a subsidiary and holding company or sisters’ company is referred to as transfer price.

The value of the lowest transfer price acceptable by the A Division.

1b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

1c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices and to explain will the division managers will voluntarily agree to the transfer or not.

1d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

Whether the transfer should take place or not.

2a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the lowest transfer price acceptable by the A Division.

2b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

2c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices and to explain will the division managers voluntarily agree to the transfer or not.

2d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services.

Whether the transfer should take place or not.

3a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the lowest transfer price acceptable by the A Division.

3b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

3c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices to explain will the division managers will voluntarily agree to the transfer or not.

3d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

Whether the transfer should take place or not.

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Answer 4

Question

Chapter 11, Problem 3E

1a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with a subsidiary and holding company or sisters’ company is referred to as transfer price.

The value of the lowest transfer price acceptable by the A Division.

1b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

1c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices and to explain will the division managers will voluntarily agree to the transfer or not.

1d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

Whether the transfer should take place or not.

2a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the lowest transfer price acceptable by the A Division.

2b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

2c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices and to explain will the division managers voluntarily agree to the transfer or not.

2d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services.

Whether the transfer should take place or not.

3a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the lowest transfer price acceptable by the A Division.

3b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

3c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices to explain will the division managers will voluntarily agree to the transfer or not.

3d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

Whether the transfer should take place or not.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 11, Problem 3E

1a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with a subsidiary and holding company or sisters’ company is referred to as transfer price.

The value of the lowest transfer price acceptable by the A Division.

1b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

1c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices and to explain will the division managers will voluntarily agree to the transfer or not.

1d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

Whether the transfer should take place or not.

2a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the lowest transfer price acceptable by the A Division.

2b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

2c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices and to explain will the division managers voluntarily agree to the transfer or not.

2d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services.

Whether the transfer should take place or not.

3a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the lowest transfer price acceptable by the A Division.

3b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

3c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices to explain will the division managers will voluntarily agree to the transfer or not.

3d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

Whether the transfer should take place or not.

Answer 6

Chapter 11, Problem 3E

1a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with a subsidiary and holding company or sisters’ company is referred to as transfer price.

The value of the lowest transfer price acceptable by the A Division.

Answer 7

Chapter 11, Problem 3E

1a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with a subsidiary and holding company or sisters’ company is referred to as transfer price.

The value of the lowest transfer price acceptable by the A Division.

Answer 8

1b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

Answer 9

1b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

Answer 10

1c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices and to explain will the division managers will voluntarily agree to the transfer or not.

Answer 11

1c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices and to explain will the division managers will voluntarily agree to the transfer or not.

Answer 12

1d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

Whether the transfer should take place or not.

Answer 13

1d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

Whether the transfer should take place or not.

Answer 14

2a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the lowest transfer price acceptable by the A Division.

Answer 15

2a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the lowest transfer price acceptable by the A Division.

Answer 16

2b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

Answer 17

2b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

Answer 18

2c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices and to explain will the division managers voluntarily agree to the transfer or not.

Answer 19

2c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices and to explain will the division managers voluntarily agree to the transfer or not.

Answer 20

2d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services.

Whether the transfer should take place or not.

Answer 21

2d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services.

Whether the transfer should take place or not.

Answer 22

3a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the lowest transfer price acceptable by the A Division.

Answer 23

3a.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the lowest transfer price acceptable by the A Division.

Answer 24

3b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

Answer 25

3b.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The value of the highest transfer price acceptable by the H Division.

Answer 26

3c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices to explain will the division managers will voluntarily agree to the transfer or not.

Answer 27

3c.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

The range of acceptable transfer prices to explain will the division managers will voluntarily agree to the transfer or not.

Answer 28

3d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

Whether the transfer should take place or not.

Answer 29

3d.

To determine

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. For example, the price at which the goods are exchanged with the subsidiary and holding company or sister company is referred to as the transfer price.

Whether the transfer should take place or not.

Answer 30

Expert Solution & Answer

Answer 31

Expert Solution & Answer

Answer 32

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Answer 33

Ch. 11 - Prob. 1Q Ch. 11 - Prob. 2Q Ch. 11 - Prob. 3Q Ch. 11 - Prob. 4Q Ch. 11 - Prob. 5Q Ch. 11 - Prob. 6Q Ch. 11 - Prob. 7Q Ch. 11 - Prob. 8Q Ch. 11 - Prob. 9Q Ch. 11 - Prob. 10Q

Solution Summary: The author explains that the transfer price is the price charged by one department to another department of the same company for transfer of goods and services.

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services.

Whether the transfer should take place or not.

Want to see the full answer?

Chapter 11 Solutions

Solution Summary: The author explains that the transfer price is the price charged by one department to another department of the same company for transfer of goods and services.

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services. Whether the transfer should take place or not.

Want to see the full answer?

Chapter 11 Solutions

Introduction: The transfer price is the price that is charged by one department of the company to another department of the same company for the transfer of goods and services.

Whether the transfer should take place or not.