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

Assignment, Present a real life case study of the concept that you chose in...

Present a real life case study of the concept that you chose in Part One ‘in action’. You can use your own organisation or an organisation of your choice – we recommend you use an

Strength in swot analysis , Strength: Arpanaa is the only vegetarian re...

Strength: Arpanaa is the only vegetarian restaurant that offers good ambience and holistic experience for the people who visit the city. There is a free trip to the temples in

Linking strategic organizational, Linking Strategic Organizational Initiati...

Linking Strategic Organizational Initiatives to Purpose, Mission, and Vision Select an existing business that is entering into a new or emerging market for that company. You may

Organisation and develop a strategic plan, Develop Strategic Plan This...

Develop Strategic Plan This assessment requires that you analyse the capabilities of an organisation and develop a strategic plan. To enable you to do this you must complete t

Calculate capacity of the system, Cookie company is open for all day and ni...

Cookie company is open for all day and night, 24 hrs. Enough demand exists to keepthe cookie company busy 24 hrs. Assume you have: (i) One oven which can accommodate one tray

Stakeholders in an organization, a) develop a schedule for executing a stra...

a) develop a schedule for executing a strategy plan in an organization. b) Make appropriate dissemination process to gain commitment from stakeholders in an organization. c) Desi

Limitations of using balanced scorecard, Q. Limitations of using balanced s...

Q. Limitations of using balanced scorecard? - Historical performance analysis is no guide to the future. - Manipulation or 'massaging' of performance measures by management,

Formal planning, is formal planning hinder for success

is formal planning hinder for success

How can strategies ensure organizational effectiveness, Question 1: An ...

Question 1: An organisation has to scan the external environment to identify possible opportunities and threats and the internal environment for its strengths and weaknesses be

Describe packaging or labelling features, 1. Describe the brand you will es...

1. Describe the brand you will establish across as many dimensions as you think are relevant 2. What will your brand association be? i.e. what is the one thing, above al

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages