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

Describe hopwood’s social controls, Q. Describe Hopwood’s Social controls? ...

Q. Describe Hopwood’s Social controls? Group norms, staff culture and social interaction can control what is acceptable and unacceptable behaviour, it also can determine accept

Concept of clan - cultural control, Q. Concept of clan - cultural control? ...

Q. Concept of clan - cultural control? Clan control requires a common understanding of norms and standards amongst an organisations diverse membership e.g. staff and team membe

Technique to strategic management, A new technique to strategic management ...

A new technique to strategic management was developed in early 1990's by Drs. Robert Kaplan (Harvard Business School) and David Norton. Kaplan and Norton explain the innovation of

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.

Future organisation strategy, The company is now aggressively working towar...

The company is now aggressively working towards being the largest retail chain in the country and also being first in profitability. At the same time the company is exploring maki

Caselet, caselet in strategic management :National Competitive Advantage of...

caselet in strategic management :National Competitive Advantage of IKEA Group, a Swedish company founded in 1943 with its headquarters in Denmark, is a multinational operator of a

Supplementary activities, To be effective in hazard control programme it...

To be effective in hazard control programme it must be planned and should be logical. Programme objectives and safety policies need to be established. Responsibility to th

Outbound logistics.., advantages of outbound logistics management

advantages of outbound logistics management

Leadership, i have to redo the assignment

i have to redo the assignment

Research on a business organization, The title of the research question is:...

The title of the research question is: 1. To investigate and research on a business organization of your interests. 2. To identify the scope of their business strategy, within th

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages