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

Limitations of economic value added, Limitations of economic value added (E...

Limitations of economic value added (EVA) - Not well understood by users of accounts. - Divisions of different sizes cannot be relatively compared. Similarities of EV

CompXM, The statement of cash flows for Baldwin Company shows what happens ...

The statement of cash flows for Baldwin Company shows what happens in the Cash account during the year. It can be seen as a summary of the sources and uses of cash (sources of cash

Capstone business simulation, need help with capstone business

need help with capstone business

Explain the different types of personalisation systems, Question: (a). ...

Question: (a). With the help of appropriate examples of your choice explain the different types of personalisation systems? (b). Distinguish between the micropayments and

Perform external and internal audits, Perform external and internal audits ...

Perform external and internal audits Follow the strategic development content then Aldi can perform external and internal audits. In external audit is considered an important

Financial perspective for not-for-profit organisations, Q. Financial perspe...

Q. Financial perspective for not-for-profit organisations? The primary objective is profit for most organisations, but for an NPO they are non-profit making. Value for money (V

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

Assessing the suitability of a strategy concerns, Whether, a strategy addre...

Whether, a strategy addresses the circumstances in which an company is operating

Statistical procedure for management, A highly perishable drug spoils after...

A highly perishable drug spoils after three days. That is, a fresh unit on day t may be used on day t, day t+1, and day t+2, but must be disposed of at the end of day t+2. Each

Strategy development processes-vision and mission, Strategy development pro...

Strategy development processes Vision and mission statements There was no announcement about Aldi's mission statement, but it's vision relates to offer its customers in

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages