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

I need help with assignment, I need help with assignment

I need help with assignment

Maintaining the strategic plan, A good strategic plan is a dominant motivat...

A good strategic plan is a dominant motivator for change and usual progress updates are crucial to maintain that momentum. The next steps then are to regularly ensure in on progres

Impact of environmental factors, Political Factors Political stability o...

Political Factors Political stability of parties and their actions like granting etc might also influence the business expansion plans of Bread Talk up to lesser extent in Singa

What do you mean by trade payable days, Q. What do you mean by Trade payabl...

Q. What do you mean by Trade payable days? Trade payable days (turnover) {Yearend trade payables / Credit purchases (or cost of sales)} x 365 days This is the length

Improve the maintenance strategy in industries, Question: (a) Define ...

Question: (a) Define the term ‘Maintenance'. How does it differ from strategic maintenance? Explain, briefly, the meaning of Maintenance Mix and state how it can be develope

Groups and teams, groups and or teams will solve all the effectiveness and ...

groups and or teams will solve all the effectiveness and efficiency challenges facing the 21st century organisation

Compensation:strategic perspective, Prepare a paper analyzing the role of M...

Prepare a paper analyzing the role of Macro Environmental Analysis and Perceived Task Environment at your workplace, or an organization of your choice. In the paper, discuss one tr

Management, What can middle managers do to moderate the distortions introdu...

What can middle managers do to moderate the distortions introduced by such biases?

#title.value chain analysi., how value chain is implemented in an organisat...

how value chain is implemented in an organisation

Internal buying decisions, Transfer pricing is applied internally within a ...

Transfer pricing is applied internally within a group for management accounting purposes e.g. to measure the performance of divisions. Increasing or decreasing an internal transf

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages