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Q. Explain Activity based management?
Activity based management (ABM) is about satisfying customers whilst making fewer demands on internal resources. The aim is that once cost drivers are created, organisations can aim to reduce cost, by creating models for more effective planning and control. ABM can lead towards the elimination or reduction of non-value added activities e.g. customer returns, complaints and obsolesce of stock. By eliminating activities which don't add value to customers, an organisation may still satisfy customers and at the same time make fewer demands on organisations resources.
This introduction of technology (for example, the Internet/mobile technology/software) has eliminated some industries and has significantly impacted/threatened several others. Howe
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Q. Explain Two-part tariff system? With a two-part tariff system the buyer is charged: A transfer price equal to the seller's variable (marginal) cost for each unit sold
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Q. Describe the Maximum transfer price? Normally the maximum transfer price a buyer would pay would be the market price it could obtain the raw material, component, service, pr
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