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

Explain business strategy, Explain Business strategy Business strategy...

Explain Business strategy Business strategy is concerned with how an operating unit or strategic business unit approaches a certain market. This is the level where competitiv

What do you mean by controllable costs, Q. What do you mean by Controllable...

Q. What do you mean by Controllable costs? Controllable costs Divisional variable (marginal) cost. Divisional 'specific' fixed cost e.g. Specifically incurred by

Explain porter''s five forces analysis of the beer industry, Question 1: ...

Question 1: Mauritian sugar companies decide to go and invest in sugar cane farming and sugar production in an African country. What sort of study must they carry out on the co

General electric model, what are the advantages of using tha general nine e...

what are the advantages of using tha general nine electric model

Prepare a successful quality based strategy, Question: (a) To prepare ...

Question: (a) To prepare a successful quality based strategy requires an effective leadership. Explain briefly the requirements of effective leadership in this context.

Diversification, refer to case scenario,is ICP''s focuse low-cost/price str...

refer to case scenario,is ICP''s focuse low-cost/price strategy opproprate for its industy?why?

Process to implement balanced scorecard, Q. Process to implement balanced s...

Q. Process to implement balanced scorecard? 1. A clear vision of introduction of a BSC communicated and demonstration which senior management are committed to the idea. 2. E

Strategic information management, TASK 1 What are the key system appli...

TASK 1 What are the key system applications in a business? What role Data/Information plays to support the management decision making. Examine the criteria to be applied when

Principles of hyper competitive strategies., how might the principles of hy...

how might the principles of hyper competitive strategy b apllied to a fashion retailing industry

Dynamics of 9 C''s in triple triangle framework, describe triple triangle f...

describe triple triangle framework

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages