Transfer Price

When one division of a company does business with another, they have to set a transfer price that reflects more or less a fair market price for that product or service. 

Example: Disney Movies want to advertise their new football themed movie starring Zac Efron all over EPSN. Well, Disney owns its movie studio; and it also owns ESPN. So at what price should the movie studio be "transferring" dollars to ESPN in return for ads promoting the movie? Whatever that price per... eyeball (times two)—that's the transfer price.