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

Data mining is about, Finding trends and connections in data to inform comp...

Finding trends and connections in data to inform competitive strategy

Theories, what are the theories that can be applied at different levels of ...

what are the theories that can be applied at different levels of a business? i.e. Firm Level, Industry level and global level

In a cost/benefit analysis, Payback period = total cost of investment / est...

Payback period = total cost of investment / estimated annual revenue

Strategy Formulation, # 14 Strategy formulation presupposes a set of goals ...

# 14 Strategy formulation presupposes a set of goals and objectives. Why aren''t goals and objectives obvious? What characteristics of people and organizations can make setting goa

Hard HRM, what is that

what is that

Advantages of time study, 1. Output standards are easily convertible into...

1. Output standards are easily convertible into labor costs per unit of output. 2. Output standards facilities scheduling and controlling the flow of production thr

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

Non-superannuation strategies, Yanni and Joanna need some investment advice...

Yanni and Joanna need some investment advice. Joanna has sold $660,000 worth of WOW shares that she inherited late last financial year. She has $616,000 remaining after paying capi

Mission statements for an organization, a) Examine core organizational valu...

a) Examine core organizational values (ethical, cultural, environmental, social and business) with the present business objectives of an organization. b) Make appropriate vision a

Humantitiesstudying the humanities in a business or, Ask question #Minimum ...

Ask question #Minimum 100 words accepted What is the value of studying the humanities in a business or technical curriculum? How might a topic such as ancient art enhance contempor

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages