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.
application of g.e matrix
What Is Strategy? 1. A company's strategy is management's game plan for how to grow up the business, how to attract & please customers, how to compete effectively, how to cond
Q. Neely's 4Cs in performance measurement 1. Check position e.g. where are we now? 2. Communicate position e.g. to internal and external stakeholders. 3. Confirm pri
This report discusses is based on the strategic management of Bread Talk. Bread Talk is, a Singapore based fFood cCompany . It is identified that under strategic management, The co
QUESTION (a) What is strategy implementation, and what problems may arise in implementing a strategic change? (b) Who implements strategy in the organisation and how can the
The assignment for the module is an individual report which contributes 25% of the module total mark. You should conduct a Strategic Position Analysis (Situation Analysis) on an or
1 .Characterize the culture of the organization in which you work. How does this culture affect the work of middle managers? Have you experienced deliberate interventions by senior
Question: (a) Describe the concept of virtual organisation. (b) ‘It is critical for an organisation to attain congruence between its strategy and organisational structure
Linking Strategic Organizational Initiatives to Purpose, Mission, and Vision Select an existing business that is entering into a new or emerging market for that company. You may
1.1 Describe the importance of external factors affecting an organization. 1.2 Examine the requires and expectation of stakeholders of an organization. 1.3 Examine the main chang
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