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

Describe hopwood’s social controls, Q. Describe Hopwood’s Social controls? ...

Q. Describe Hopwood’s Social controls? Group norms, staff culture and social interaction can control what is acceptable and unacceptable behaviour, it also can determine accept

Why a gis implementation might fail, What are the three important reasons w...

What are the three important reasons why a GIS implementation might fail, according to Eason (1994)?   Ans) Organizational mismatch Non-usability User acceptability

Competitive strengths, a) Use appropriate tools to examine the  affects of ...

a) Use appropriate tools to examine the  affects of present business plans. b) Review the position of an organization in its present market. c) Measure the competitive strengths

What are the four types of strategic control, QUESTION 1 The most impor...

QUESTION 1 The most important purpose of strategic control is to help Top Management achieve organizational goals through monitoring and evaluating the strategic management pro

Animal processing, what is HACCP and benefits in food industry

what is HACCP and benefits in food industry

International aspects to transfer pricing, Q. International aspects to tran...

Q. International aspects to transfer pricing? The following issues can influence international transfer pricing decisions. Exchange rates e.g. fluctuations in global cur

Strategic management, explain strategy as an organisational process

explain strategy as an organisational process

Movie Exhibition Industry, Review trends in the general environment that af...

Review trends in the general environment that affect the movie exhibition business, and establish whether their effects are helpful or harmful to theater owners.

What are the essential qualities of negotiators, Question 1: (i) Critic...

Question 1: (i) Critically evaluate this statement: "Disputes can be resolved through use of interest-based negotiations only" (ii) Discuss the prerequisites necessary fo

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd