What do you mean by dual pricing, Strategic Management

Assignment Help:

Q. What do you mean by Dual pricing?

Dual transfer pricing means setting one transfer price for the internal seller and another transfer price for the internal buyer.  The basic idea is to encourage trade by creating the most beneficial price for both parties.

  • Internal seller: The transfer price received would be set at the external market price e.g. the price that would normally be charged to external customers.
  • Internal buyer: The transfer price paid would be set at the sellers variable (marginal) cost of production.

The difference between the two transfer prices would need reconciling by head office when preparing the group consolidated financial results.  Dual pricing is a similar approach to the opportunity cost approach which is discussed later.


Related Discussions:- What do you mean by dual pricing

Impact on the organizational and personal levels, Question Sarah and ...

Question Sarah and John are both working for a software development company. The manager of the new product division was originally the leader of the project team for whi

Show the features of international and global strategies, Question: (a)...

Question: (a) Firms are always looking to outperform each other; three generic strategies have been identified to allow them not only to attain advantages over competitors b

Organisations strategic capabilities, Strategies of the organisation suppor...

Strategies of the organisation support in the business expansion and increase the revenue . Following are the strategic capabilities: Production: Open kitchen system is used by

Models of strategic management, your own company. Consider how this organiz...

your own company. Consider how this organization has developed their strategic management. Then write an original article addressing how this organization selected a model of strat

Marketing strategy for services, Marketing Strategy for Services ...

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

International trade, Suppose that the small country of Fiji is isolated fro...

Suppose that the small country of Fiji is isolated from the rest of the world and no international trade occurs due to prohibitively high transportation costs. Amongst other things

BOSTON CONSULTING GROUP AND GE MATRIX, WHAT ARE THE CHARACTERISTICS OF EACH...

WHAT ARE THE CHARACTERISTICS OF EACH COMPONENT OF THE GE MATRIX?

Make a histogram and obtain descriptive statistics, For this question you w...

For this question you will analyse box office receipt data for two movies: Harry Potter 1: Sorcerer's Stone and Pirates of the Caribbean 1: Curse of the Black Pearl . Go

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd