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

Ideal mission statement of a business organisation, Question 1: Elabora...

Question 1: Elaborate on the following business strategies giving examples, and discuss under what circumstances these business strategies are applied. a) Forward integrati

Jidoka - quality at source, Jidoka - Quality At Source Jidoka was firs...

Jidoka - Quality At Source Jidoka was first introduced by Dr Taichi Ohno into the Toyota Motor Company in the early 1960s. In the process of producing an efficient material fl

Strategic management, 1. “A mission describes what the organization is now;...

1. “A mission describes what the organization is now; a vision statement describes what the organization would like to become.” Differentiate between corporate mission and strategi

Successful business teams, 1 Explain the characteristics of successful busi...

1 Explain the characteristics of successful business teams 2 Explain the importance of team roles in successful business teams 3 Examine the value of using theoretical models whe

Time study, Times it consists concerned with the determination of the ...

Times it consists concerned with the determination of the amount of time required to perform a unit of work. It consists of process of observing and recording the tim

Influences on consumer behavior, Using online research and the resources on...

Using online research and the resources on the Student Portal: 1. Identify aspects of culture which may have an impact on the international marketing of your selected marketing

What are the six steps in strategic planning, Question: (a) Explain, w...

Question: (a) Explain, with an example of your choice, why providing more resources on a project does not always lead to completion of the work earlier than scheduled or getti

Information strategic plan, Submit the integrated final copy of your Inform...

Submit the integrated final copy of your Information Strategic Plan. The proposal will actually consist of the purpose, history, and scope located in the final project template

Incorporate strategic career planning, What outcomes are being assessed ...

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

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