What is Transaction Costs?

The costs of 'doing business' are called transaction costs and it is further classified as internal and external transaction costs. Market reviews, negotiations, supplier assessment are examples of external transaction costs while, discussing internal transfer pricing and developing service level agreements are examples of internal transaction costs.

Related Terms

What is Tail Spend?What is Taxonomy?What is Third-Party Logistics (3PL)?What is Third-Party Risk Management (TPRM)?What is Three Way Match?