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.
The company is now aggressively working towards being the largest retail chain in the country and also being first in profitability. At the same time the company is exploring maki
explain strategy as an organisational process
VRC is a family owned business which has been manufacturing racing cycles for over a century. Over the years, the company has been relatively successful, although its growth has te
Write a submission to your chief executive officer of your organisation describing a strategy to improve the organisation's assets, their management, and the standard of service wh
Q. Evaluate the Dividend yield? Creating shareholder value Dividend yield Dividend yield = (Dividend per share / Market share price) x 100% The dividend yiel
Product Mix - Satchmo & Satchmo Electronics developes two products that can be make on two different production lines. Both products have their lowest production costs when produc
WHAT ARE THE CHARACTERISTICS OF EACH COMPONENT OF THE GE MATRIX?
Critically evaluate and analyse leadership you have witnessed in specific situations. This means comparing concrete examples (what was said and what was done) to relevant theories
TicketID: EM201729KAT59SM where is my assignment,. I would like to track process.
apply a five forces analysis how would you describe Genentech competitive position
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