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

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.

Discuss the main categories of the matrix, Question: (a) ‘Many organi...

Question: (a) ‘Many organisations are using the internet a tool for survival. Digital firms require new organisational designs and management processes'. Explain how the Por

Portfolio analysis, In portfolio analysis, the business views its product l...

In portfolio analysis, the business views its product lines and business units as separate investments, each responsible for producing a positive return. These separate investments

Shareholder value is determined by, The long-term cash-making capability of...

The long-term cash-making capability of the company

Zachman framework, Discuss the following quotation and please provide ...

Discuss the following quotation and please provide examples. "Enterprise Architecture frameworks such as the Zachman Framework are essentially conceptual skeletons tha

Explain functional strategy, Explain Functional strategy Functional st...

Explain Functional strategy Functional strategy for J plc will be concerned with how the constituent parts of the organisation can effectively deliver the corporate and busin

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 the table showing net profit and residual income, Question: A l...

Question: A large conglomerate with diverse business activities is currently considering whether it should commence Project X and has gathered the following data: Project X

Identify and critically analyse fundamental issues r, identify and critical...

identify and critically analyse fundamental issues related to strategic management. Undertake a study that shows clear evidence of synthesis and evaluation

Multidimensional performance measurement, Q. Multidimensional performance m...

Q. Multidimensional performance measurement? Multidimensional performance indicators recognise that the constant drive to increase profitability can ultimately be self-defeati

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages