Final answer:
Transfer pricing is a term that applies to transactions between different divisions or units of the same company.
Step-by-step explanation:
The statement that transfer pricing applies to transactions between different divisions or units of the same company is true. Transfer pricing refers to the pricing of goods, services, or intangible assets when they are transferred between divisions or units within a company. The purpose of transfer pricing is to determine the fair value of these transactions and ensure that they are conducted at arm's length, as if the transactions were between separate entities. This helps to allocate costs, measure performance, and manage tax implications within the company.