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

Managing strategy and change, Taking into account the industry dynamics and...

Taking into account the industry dynamics and characteristics of the automotive industry, discuss the rationale (reasons for)the collaborative partnership between Renault, Nissan a

Explain activity based management, Q. Explain Activity based management? ...

Q. Explain Activity based management? Activity based management (ABM) is about satisfying customers whilst making fewer demands on internal resources. The aim is that once cos

Industrial accident, An industrial accident may be defined as "an occurrenc...

An industrial accident may be defined as "an occurrence. Which interrupts or interferes with the orderly progress or work in an industrial establishment." According to the Facto

Work place, different cultures

different cultures

Corporate Strategy, Corporate Strategy

Corporate Strategy

Contrasting strategic planning to strategic control, Contrasting strategic ...

Contrasting strategic planning to strategic control Strategic planning is a more centralised planning approach, senior management tend to focus less on implementing specific c

What is strategy & why strategy is important?, What Is Strategy & Why Strat...

What Is Strategy & Why Strategy Is Important? Managers at all companies facade three innermost questions in view strategically concerning their companies' current circumstances

strategy options for an organization, a) Use modelling tools to make strat...

a) Use modelling tools to make strategy options for an organization. b) Make a comparative understanding of activity from organizations in the market. c) Make options to form the

Analyze and diagnose a current and significant organization, Option A. ...

Option A. Identify, analyze, and diagnose a current and significant organization problem or objective that directly involves any one or more of the following organizational be

Limitations of time study, 1. Unions quite frequently oppose the time ...

1. Unions quite frequently oppose the time study because the accuracy of time study is overly dependent upon the skill and judgment of the time study man. The time

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages