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.
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
Q. Show the Demerits of using return on investment? The following disadvantages maybe experienced when choosing to use ROI as a primary performance measure. - An accounting
Europe and the U.S have been pioneers in macro and micro scales in business, both internationally and in their local market. But U.S can be said to be a few step ahead of Europe, c
Q. Show the relationship between equity and debt? Gearing is the relationship between equity and debt. Debt is generally long term liabilities that the organisation has. Equi
Four perspectives of the balanced scorecard Customer perspective e.g. what should we do right for our customers and what do they value? Internal perspective e.g. what
I need a buyer utility map for Pepsi
The beyond budgeting approach may include the following: Use of rolling budgets concentrating on cash forecasts and not cost control. Budgets revised more frequently
There are three principles of total quality: customer focus, continuous improvement, and teamwork. Using the South University online library, find three articles that describe curr
1. Run the Heterogeneous Catalysis simulator for different initial conditions (initial partial pressures of species A, B, C, and D) to get the reaction rates; 2. Study the influ
Submit the integrated final copy of your Information Strategic Plan. The proposal will actually consist of the purpose, history, and scope located in the final project template
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