Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Transfer price

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

Jayati

Jayati (Querist)

01 May 2014 can anyone give me a brief idea about transfer price and opportunity cost.

Nikhil Kaushik

Nikhil Kaushik (Expert)

01 May 2014 transfer price has many connotations. a simpler one i, "it is the price at which a product or service is transferred" The transfer can be within an organization - from one department to another. (this is relevant from costing perspective), or it can be between associated (related party) organizations - this is relevant from income tax perspective, or it can be between independent organizations, which is nothing but the sale price.

with regards to opportunity cost - it refers to the cost of next best opportunity available that is foregone when you pick another option. For eg: if cost of samosa is Rs 10 and cost of bread-jam is Rs 8. In this case if you decide to eat samosa, cost of bread jam is the opportunity cost.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now