The products or services that are transferred between different subunits of a company are classified as _____________?
Correct answer: D. intermediate product
- A. mobile products
- B. dysfunctional products
- C. territorial product
- D. intermediate product
Explanation
An intermediate product is transferred from one subunit to another for further processing or use. The other choices are not standard classifications in transfer-pricing terminology.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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