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

Mensa, I need a five year plan with cost estimates and a time line also net...

I need a five year plan with cost estimates and a time line also net present values at 10% discount rate

Illustrate about value for money framework, Q. Illustrate about Value for m...

Q. Illustrate about Value for money framework? The value for money (VFM) framework (the 3Es) Economy (Cheap) e.g. is the organisation procuring resources at the lowe

Explain about financial analysis, Q. Explain about Financial analysis? ...

Q. Explain about Financial analysis? The objective of financial statements is to provide information to all users of accounts to help them for decision-making. Note that most

Organisational behaviour, explain strategy as an organisational process

explain strategy as an organisational process

Explain key principles of total productive maintenance, Question: (a) E...

Question: (a) Explain clearly how businesses may adopt key principles of Total Productive Maintenance in order to create a safe and productive environment. (b) Describe in d

Strategic management process, Have you ever been involved in an effort to i...

Have you ever been involved in an effort to introduce a new product, service or technology in an organization? If so, share your experiences with the class. Provide the class wi

Strategic issues for global market-maximize sales ratio, (1.) Infosys follo...

(1.) Infosys follows a global delivery model that enables the company to maintain standards. The vertical differentiation strategy did help the company to gain control over the ope

Show the activity based budgeting, Q. Show the Activity based budgeting? ...

Q. Show the Activity based budgeting? Activity based budgeting (ABB) uses cost 'drivers' for different support resources consumed e.g. machining, quality control or admini

Branch manager, Discuss how changes in income ,technology ,or other changes...

Discuss how changes in income ,technology ,or other changes in the economic environment may lead to changes in the balance between public and private provision .Illustrate,for ins

Importance of costs in the pricing strategy, Explain the importance of cost...

Explain the importance of costs in the pricing strategy of your chosen organisation. Importance of Cost Cost is more important than ever before, especially in the current e

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages