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

Team development, 1.Describe the stages of team development 2 Justify how ...

1.Describe the stages of team development 2 Justify how to motivate team members to achieve given aim.

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

Essence of management, Do a complete budget for the company you explained i...

Do a complete budget for the company you explained in the Business Plan. You will have to display the profit and loss account, Balance Sheet along with discussions on the budget as

What is uncontrollable costs, Q. What is Uncontrollable costs ? Uncont...

Q. What is Uncontrollable costs ? Uncontrollable costs General apportioned fixed overhead e.g. group overhead allocated or apportioned to divisions, which would not b

How market has influenced the forms and content of the media, 1. The develo...

1. The development of the mass media has been shaped in fundamental ways by the fact that they have often been profit-driven. The commercial or capitalist context of media is evide

Strategic inflection points, It is the times in the life of a business or a...

It is the times in the life of a business or a person when fundamentals are about to be change.

Environmental appraisal, introduction

introduction

Solve this question as soon as posibble, Tangy spices Ltd, the countries’ ...

Tangy spices Ltd, the countries’ biggest spices marketer has decided to launch a hostile bid for Italy’s major spice marketer Chilliano. This is a rare case of an Indian company ma

Knowledge management techniques, Bert's Bonsai sells Bonsai plants, tools a...

Bert's Bonsai sells Bonsai plants, tools and materials to cultivate them, and literature in book and magazine form. An early adopter of electronic records, they are still happily u

Activities in strategic management process, a) identify and explain the key...

a) identify and explain the key activities in the strategic management process. b) why do businesses need to go international .?

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages