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

Arguments for the controllability principle, Q. Arguments for the controlla...

Q. Arguments for the controllability principle? - It would be considered fairer by a manager if they were not assessed on costs which are not within their own control. This is

Importance of strategic management , Discuss What is the importance of stra...

Discuss What is the importance of strategic management towards the success of a business? Ans) Strategic management used to play a dissimilar after the Second World War. Strateg

Why are crafting & executing strategy important, Why are Crafting & Executi...

Why are Crafting & Executing Strategy Important? 1. Crafting & executing strategy are the top managerial tasks for two very large motives:- (a). Here, compelling requirem

Vender cost , Items purchased from a vender cost $20 every, and the forecas...

Items purchased from a vender cost $20 every, and the forecast for the next year's require is 1,000 units. The cost of placing an order is estimated to be $5 each time an order is

astro line, (A) What is the optimal solution, i.e., how many units of e...

(A) What is the optimal solution, i.e., how many units of every watch should be formed to maximize daily profits and how much daily profit will the company create? (B) How m

Illustration of brand orientated divisional structure, Q. Illustration of b...

Q. Illustration of brand orientated divisional structure? The Whitbread Group Plc, have several independent divisions or SBUs managing its popular brands of hotels, restauran

strategic intent, Pick a firm, discuss the effectiveness of current strate...

Pick a firm, discuss the effectiveness of current strategy and make a recommendations regarding a more viable strategy and rational for that Choice. Background to the firm It''s cu

Organisation and develop a strategic plan, Develop Strategic Plan This...

Develop Strategic Plan This assessment requires that you analyse the capabilities of an organisation and develop a strategic plan. To enable you to do this you must complete t

Groups and teams, groups and or teams will solve all the effectiveness and ...

groups and or teams will solve all the effectiveness and efficiency challenges facing the 21st century organisation

Industry Profitability, How do the five competitive forces in Porter''s mod...

How do the five competitive forces in Porter''s model affect the profitability of the overall industry? For example, in what way might weak forces increase industry profits, and in

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages