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

What do you mean by dual pricing, Q. What do you mean by Dual pricing? ...

Q. What do you mean by Dual pricing? Dual transfer pricing means setting one transfer price for the internal seller and another transfer price for the internal buyer. The basi

Feedback control - appraisal, Feedback is a process where part of the outpu...

Feedback is a process where part of the output of a system is measured and returned as input to regulate the systems further output. Feedback normally involves gathering informat

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

Explain the components of strategic management, Question 1 What are the adv...

Question 1 What are the advantages of strategic management? Question 2 Explain the components of strategic management Question 3 List the reasons for cross-border mergers and

Internal Environment, Explain the internal environment by undertaking the i...

Explain the internal environment by undertaking the internal auditing in the form of management, marketing, accounting, operations/production research and development an management

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

Models of strategic management, your own company. Consider how this organiz...

your own company. Consider how this organization has developed their strategic management. Then write an original article addressing how this organization selected a model of strat

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

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

Steps for setting up a maintenance strategy, Question: (a) Briefly elab...

Question: (a) Briefly elaborate on the steps for setting up a maintenance strategy. (b) Failures can be grouped in the following three categories namely Induced, Intermitten

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages