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.
develop efe matrix for walt disney
1. Output standards are easily convertible into labor costs per unit of output. 2. Output standards facilities scheduling and controlling the flow of production thr
explain the role of communication in strategy implementation
The number of households in a certain community is given by h(t) = 1:26t 2 +7800 households t years after 2001. The proportion (expressed as a decimal) of the households in this s
Question 1: (i) In food production, the success of the operation depends on the Executive Chef and his various heads of sections in the main kitchen. What are these sections
Question: (a) Explain, with an example of your choice, why providing more resources on a project does not always lead to completion of the work earlier than scheduled or getti
Question 1: (a) What do you understand by the term "cultural web" as referred to organisations? (b) Apply the cultural web concept to Toyota. Discuss whether the cultural we
Using online research and the resources on the Student Portal: 1. Identify aspects of culture which may have an impact on the international marketing of your selected marketing
A) Producing new and better products or services B) Substitution of require by a related product or service C) Displacing consumer spending into latest unrelated products and
Q. Free cash-flow valuations? Earnings create dividends for shareholders. In theory the value of a company is the value of the company's future earnings, discounted at a rate,
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