Internal transfer price is the settlement price of products or services provided between responsibility centers within an enterprise. When each cost center provides products or services to each other, it should generally take the standard cost or estimated distribution rate as the internal transfer price, so that the economic effect of the production and operation of each cost center is entirely the performance of the center and is not affected by other cost centers. In addition to standard cost and estimated distribution rate, cost plus and variable cost can also be used as the settlement price of products or services provided between cost centers. Generally speaking, the market price should be used as the internal transfer price of the products or services provided by the profit or investment center. It can not only promote the expected profits of the relevant responsibility centers, but also promote the relevant responsibility centers to enter the competitive environment, so that they can strengthen management, reduce costs and improve economic benefits under the impetus of external pressure. In addition to the market price, bargaining and double price can also be used as the settlement price of products or services provided between profit or investment centers.
Reply time: 202 1- 12-22. Please refer to the latest business changes announced by Ping An Bank in official website.