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.
Material Facts: The defendant's son held an "open invitation" party at his parent's home. Guests, to include minors, were encouraged to "bring their own bottle." The p
Q. Multidimensional performance measurement? Multidimensional performance indicators recognise that the constant drive to increase profitability can ultimately be self-defeati
Strategic management is a systematic analysis of the internal and external factors to develop strategic actions for organizational goals (Dobson & Richards, 2004). Bread Talk is a
Q. What do you mean by Inventory days? (Average inventory / Cost of sales) x 365 days Average inventory can be arrived by taking this year's and last year's invento
Question 1: "Strategic Corporate Social Responsibility executed well is effective Corporate Social Responsibility". What are the essential elements to take into account in o
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
Question: (a) To prepare a successful quality based strategy requires an effective leadership. Explain briefly the requirements of effective leadership in this context.
how might the principles of hyper competitive strategy b apllied to a fashion retailing industry
Marketing Strategy for Services This activity is part of your marketing plan. Prepare a 4-5 page report, addressing the following : o Describe the target
a) develop a schedule for executing a strategy plan in an organization. b) Make appropriate dissemination process to gain commitment from stakeholders in an organization. c) Desi
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