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

Strategy and employee performance, Select an existing business that aligns ...

Select an existing business that aligns their business strategy with employee performance. You may also use your own company. Consider the effect this alignment has had on sustaini

Describe the concept of virtual organisation, Question: (a) Describe th...

Question: (a) Describe the concept of virtual organisation. (b) ‘It is critical for an organisation to attain congruence between its strategy and organisational structure

Describe about interest cover, Q. Describe about Interest cover? Intere...

Q. Describe about Interest cover? Interest cover = (Profit before interest and tax (PBIT)/ Interest payable) (no. of times) Interest cover shows the safety of e

Successful business teams, 1 Explain the characteristics of successful busi...

1 Explain the characteristics of successful business teams 2 Explain the importance of team roles in successful business teams 3 Examine the value of using theoretical models whe

Integrated marketing communication, Integrated Marketing Communication (IMC...

Integrated Marketing Communication (IMC ) and Marketing Channel strategy : Develop a promotional strategy addressing the advertising and sales promotion aspect of communic

ABN Amro Acquisition, The strategy

The strategy

Industry Profitability, How do the five competitive forces in Porter''s mod...

How do the five competitive forces in Porter''s model affect the profitability of the overall industry? For example, in what way might weak forces increase industry profits, and in

ReStrategic, Process design strategy define with example

Process design strategy define with example

What is performance pyramid, Q. What is performance pyramid? The perfo...

Q. What is performance pyramid? The performance pyramid Like the balanced scorecard or 6-dimensional performance matrix, the performance pyramid is a multidimensional mo

What does process of crafting and executing strategy entail, What Does Proc...

What Does Process of Crafting & Executing Strategy Entail? 1. Crafting & executing a company's strategy is a five-stage managerial process: (a). Developing a strategic vi

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages