What is a transfer cost and how is it different than transport costs?

Expert Solution

Question : Transfer cost also known as the ttransfer price is the cost which multinational corporations use . It is the cost of transacting that is supplying labor or capital or selling and buying of goods and services within the two or more departments or two or more corporations which are part of a single multinational or multi entity company. It is the prices of goods and servuces that are exhanged among subsidiaries or between subsidiary and its owning firm. Transportation cost on the other hand is the cost of carrying goods physically from one place to another.

Rahul Sunny answered 2 years ago

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