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

Organisation strategic, According to strategic management, The company has ...

According to strategic management, The company has used location strategy to sustain its market share in the food and beverages industry. The company has selected high traffic area

Groups and teams, groups and or teams will solve all the effectiveness and ...

groups and or teams will solve all the effectiveness and efficiency challenges facing the 21st century organisation

Weakness in swot analysis , Weakness: Though Arpanaa has the best amenitie...

Weakness: Though Arpanaa has the best amenities in tow which are not offered by the hotels that are located in and around the town, it runs short of few features such as non veget

Problems of profit based measures, Problems of profit based measures -...

Problems of profit based measures -  Absolute profit measures ignore the amount of investment in the division e.g. does not look at profit relative to capital employed. -

Explain the reliability centred maintenance approach, Question: (a) The...

Question: (a) The prevailing business environment is continuously changing with respect to the emerging complexities in the development and use of new equipment, technologies a

Explain different aspects of term organisation culture, Question 1: (i)...

Question 1: (i) Explain the different aspects of the term ‘Organisation Culture'? (ii) Examine critically and discuss the importance of Organisational Culture in the imple

Explain about value based management, Q. Explain about Value based manageme...

Q. Explain about Value based management? Value based management (VBM) is an approach which focuses on strategies and actions to create more value for shareholders.  Value being

A prolific author, Dr. Allen Roth, a prolific author, is considering initia...

Dr. Allen Roth, a prolific author, is considering initiallising her own publishing company.  He will call it STC Publishing, Inc.  STC estimated costs are: Fixed Cost    =    $25,0

Opportunities in swot analysis , Opportunities: The hotel has now 20 spaci...

Opportunities: The hotel has now 20 spacious rooms that can offer excellent comfort and luxury to the upper middle class people who visit the place. The rooms are completely booke

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd