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

Vikash kumar, social responsblities of strategic decision maker

social responsblities of strategic decision maker

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

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

Define a penetration pricing strategy, Strategy used to gain as much sales ...

Strategy used to gain as much sales volume as possible as fast as possible by undercutting competitors' prices.

Strategic information management, TASK 1 What are the key system appli...

TASK 1 What are the key system applications in a business? What role Data/Information plays to support the management decision making. Examine the criteria to be applied when

General electric model, what are the advantages of using tha general nine e...

what are the advantages of using tha general nine electric model

Technological effects of globalization in an organization, Methodology T...

Methodology The purpose of this research is to gather statistical information and data on how technological affects globalization, and how the trend of globalization is affectin

Material facts - sample case briefing, Material Facts: The defendant'...

Material Facts: The defendant's son held an "open invitation" party at his parent's home. Guests, to include minors, were encouraged to "bring their own bottle." The p

Vender cost , Items purchased from a vender cost $20 every, and the forecas...

Items purchased from a vender cost $20 every, and the forecast for the next year's require is 1,000 units. The cost of placing an order is estimated to be $5 each time an order is

Discuss the key activities of the strategic manageme, Discuss the key activ...

Discuss the key activities of the strategic management process. Explain why it is important for managers to recognise the interdependent nature of these activities.

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages