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

In a cost/benefit analysis, Payback period = total cost of investment / est...

Payback period = total cost of investment / estimated annual revenue

Methods for evaluating the performance of divisions, Q. Methods for evaluat...

Q. Methods for evaluating the performance of divisions? Profit based methods for evaluating the performance of divisions Operating profit (net profit) margin =

Beyond budgeting approach, The beyond budgeting approach may include the fo...

The beyond budgeting approach may include the following: Use of rolling budgets concentrating on cash forecasts and not cost control. Budgets revised more frequently

A strategic vision is differ from a mission statement, A Strategic Vision i...

A Strategic Vision is Differ from a Mission Statement: Whereas the chief concern of a strategic vision is with "where we are going & why", a company's mission statement usua

Initiate organizing campaign for technical employees union, 1) Company A wa...

1) Company A wants to discourage unionization through the United Technical Workers of America. True or False: In order to do so, it can initiate an organizing campaign for the Tech

Explain about dividend yield, Q. Explain about Dividend yield ? Dividen...

Q. Explain about Dividend yield ? Dividend yield = (Dividend per share/Market share price) x 100% The dividend yield is the cash return on the share (not the whole retur

Fratar method, The following table shows present trips between three zones ...

The following table shows present trips between three zones and the predicted total trips in 10 years. Distribute the predicted trips using the average factor method. Stop with two

Show the limitations of ratio analysis, Q. Show the Limitations of ratio an...

Q. Show the Limitations of ratio analysis ? A ratio on its own is meaningless, accounting ratios must always be interpreted in relation to other information. Ratios based on h

Management decision - making case problem, Louise Nance had working on the ...

Louise Nance had working on the assembly line of the Jackson Manufacturing Company for about six months. During recent weeks, her supervisor, Ben Miller, noticed that her productio

Importance of strategising in the success of a company, Which is more impor...

Which is more important in explaining the success or failure of companies: strategising or luck?

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages