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

Financial perspective for not-for-profit organisations, Q. Financial perspe...

Q. Financial perspective for not-for-profit organisations? The primary objective is profit for most organisations, but for an NPO they are non-profit making. Value for money (V

Free cash flows, Free cash flows can be arrived at by using the following c...

Free cash flows can be arrived at by using the following calculation Operating profit before interest and tax (PBIT) + Depreciati

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

Describes a business model , Product flows, information flows, service flo...

Product flows, information flows, service flows participants' roles

Banking systems fraud and technology approach, Banking Systems Fraud and Te...

Banking Systems Fraud and Technology Approach It is my intention to use the Banking Systems in Nigeria for this case study. I have observed that the process of banking operat

Consolidation is concerned with, Protecting and strengthening the organizat...

Protecting and strengthening the organization's position in its present markets by its current products

Open communication , 1. Encourage open communication among team members to ...

1. Encourage open communication among team members to support team development 2. Demonstrate ways of resolving conflict among team members

Internal buying decisions, Transfer pricing is applied internally within a ...

Transfer pricing is applied internally within a group for management accounting purposes e.g. to measure the performance of divisions. Increasing or decreasing an internal transf

Discuss whittington''s four generic approaches to strategy, Question 1: ...

Question 1: What is strategy? Discuss Whittington's four generic approaches to strategy. Which approach would be most suitable to Toyota? Question 2: Research has shown

Miss, how much for a dissertation 15,000 words due in June with the topic i...

how much for a dissertation 15,000 words due in June with the topic is Strategic management? thanks

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages