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. Explain about Trade receivable days? {Yearend trade receivables / Credit sales (or turnover)} x 365 days This is the average length of time occupied by customers to pay
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
Q. Explain Performance ratios - Return on capital employed? Return on capital employed (ROCE) = (Profit before interest and tax (PBIT) / Capital employed) x 100% The
Current traffic pattern given as below. ZONE DESTINATION ZONE ORIGIN 1 2 3
Review trends in the general environment that affect the movie exhibition business, and establish whether their effects are helpful or harmful to theater owners.
Due Date: 24 Oct 12 by 10 a.m. Prepare an analysis of a Fortune 500 company that you find interesting using the 2011 list at CNNMoney, You">http://money.cnn.com/magazines/fortune/
bcg analyis matrix of mcb bank
Q. Arguments for the controllability principle? - It would be considered fairer by a manager if they were not assessed on costs which are not within their own control. This is
What outcomes are being assessed 1. Demonstrate to a prescribed acceptable industry level service skills within a tourism/hospitality operation (b) 2. Recognise and examine
groups and or teams will solve all the effectiveness and efficiency challenges facing the 21st century organisations.discuss
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