Transfer price意思

"Transfer price" is a term used in business, particularly in the context of accounting and finance, to refer to the price at which goods or services are transferred between departments within the same company or between related companies. The transfer price is often set to reflect the cost of production or the value of the goods or services being transferred, but it can also be set based on market prices or other factors.

Transfer pricing is important because it can have a significant impact on the financial statements of the company or companies involved. For example, if a company transfers goods from one department to another at a price that is higher or lower than the market price, it can affect the company's reported revenue, cost of goods sold, and profit.

In the context of international business, transfer pricing is also important because it can be used to allocate profits between countries in a way that minimizes the company's overall tax liability. For this reason, transfer pricing is subject to strict regulations in many countries to prevent companies from engaging in "transfer pricing manipulation" to avoid paying taxes.