Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. What is Minimum pricing?
The minimum transfer price an internal seller would accept will depend on whether it has spare capacity to utilise or not.
If spare capacity exists the relevant cost and therefore minimum price to a seller would be the variable (marginal) cost of production e.g. extra cost of making and selling one more unit. Variable (marginal) cost would be the only cost considered by a seller because fixed overhead is normally unavoidable and would not change if supply did or did not take place. The variable (marginal) cost represents the absolute bare minimum transfer price to a seller, in circumstances of spare capacity, at this price, the seller would be indifferent but not out of pocket. Marginal costing may also be appropriate when no intermediate market exists for the seller e.g. Seller can only sell to an internal customer and no external customers are available.
If full capacity exists, the seller would have to turn away external customers and business will be lost if further internal supply were to take place. Because of this dilemma the seller would normally want a minimum price at least equal to the external market price it would normally charge when selling to external customers, this is assuming there is no difference in the cost of supplying internal or external customers e.g. differences in packaging, delivery or marketing costs, in which case the price would normally be adjusted.
The minimum transfer price for a seller at full capacity is generally the external market price, if for some reason the seller maybe discontinuing other products to supply internally, then the minimum price would be the variable (marginal) cost of production and the lost contribution from discontinuing other products for internal supply to take place e.g. the variable cost and contribution lost being the opportunity cost.
How would you respond to Coca-Cola’s change in sales policy? How would you ensure Pepsi’s board that this response will allow you to remain competitive and profitable?
A fence enclosure consists of a rectangle of length L and width 2 R , and a semicircle of radius R , as shown in Figure 1. The enclosure is to be built to have an area of 1600 m
Q. Calculate the Earnings per share? EPS = Profit available to ordinary shareholders (PAT)/Weighted average number of shares in issue (Pence per share) This ratio shows t
groups and or teams will solve effectiveness and efficiency in 21st organisations.discuss
what is the greatest takeaway from this case in terms of strategic management
Q. Explain Performance ratios - Return on capital employed? Return on capital employed (ROCE) = (Profit before interest and tax (PBIT) / Capital employed) x 100% The
Hamadi Corporation manufactures an electronic component 'AZ-101'. This component is significantly different from its peer companies and has gained a high repute. The company presen
Question: (a). What are the benefits of implementing an eBusiness Strategy at Delta Airlines? (b). Identify the different virtual market places in the case study. (c
how might the principles of hyper competitive strategy b apllied to a fashion retailing industry
Discuss the key activities of the strategic management process. Explain why it is important for managers to recognise the interdependent nature of these activities.
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd