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. Benefits of shared service centres ? ¸ Economies of scale e.g. sharing overhead of a centralised function or process across divisions in the same group, it avoids divisions
In management strategic decision making involves great complexity, uncertainty and risk. Describe the strategic decision making process and consider the effects of bounded rationa
Q. What do you mean by Trade payable days? Trade payable days (turnover) {Yearend trade payables / Credit purchases (or cost of sales)} x 365 days This is the length
Suppose that the small country of Fiji is isolated from the rest of the world and no international trade occurs due to prohibitively high transportation costs. Amongst other things
1. Identify and discuss strategic capabilities (resources and competences) of the chosen company using appropriate strategy tools and identify strengths and weaknesses for the firm
I need a five year plan with cost estimates and a time line also net present values at 10% discount rate
Explain how Material Requirements Planning (MRP) might improve operations. Reduced stock holding MRP can simplify inventory control and levels of stock holding may be de
Question : (a) When equipment or a part thereof suddenly stops working, the operating costs in that environment start increasing due to production losses, capacity losses and
Prepare Congruence model
1. Describe and analyze the environment, strategy, and structure of your organization of choice. It is critical to provide evidence for your analysis. 2. Assess the challenges and
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