Explain two-part tariff system, Strategic Management

Assignment Help:

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 and transferred by the seller.
A fixed charge per period by seller irrespective of the amount of units sold and transferred. The fixed charge should cover the sellers fixed overhead, give an element of profit and the necessary motivation for the seller to supply.

This method is similar in nature to how you are charged for most of your domestic bills.

Related Discussions:- Explain two-part tariff system

Potential difficulties that might arise for an organisation, Identify FIVE ...

Identify FIVE potential difficulties that might arise for an organisation following the introduction of a new system if support and training are inadequate. Inefficient operat

Linking strategic organizational, Linking Strategic Organizational Initiati...

Linking Strategic Organizational Initiatives to Purpose, Mission, and Vision Select an existing business that is entering into a new or emerging market for that company. You may

Feasibility concerns, Whether an organization has the resources and compete...

Whether an organization has the resources and competences to deliver a plan

Leadership and management case study, Prepare Congruence model

Prepare Congruence model

Managing value based management, Q. Managing value based management? ...

Q. Managing value based management? Strategic selection of projects that create high shareholder wealth. Resource allocation and funding should have a recognised oppor

ReStrategic, Process design strategy define with example

Process design strategy define with example

Situation Analysis, Is someone in this field able to consult with me on a S...

Is someone in this field able to consult with me on a Situation Analysis I am currently working on?

Decision-making about production and operations stp, You are the newly-appo...

You are the newly-appointed Marketing Director of a multinational company operating in the national and regional plantation industry. In order to achieve a 100% business growth com

Divisional structures – product organisation, Q. Divisional structures – pr...

Q. Divisional structures – product organisation? The functional structure is normally adopted by an entrepreneurial structure e.g. small business, because the organisation grow

Cues of unmet demand, what cues that might cause a company to suspect there...

what cues that might cause a company to suspect there is unmet demand for its products or services. How would I design a test to determine whether My suspicions are correct?

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages