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Transfer pricing refers to the pricing of contributions (assets, tangible and intangible, services, and funds) transferred within an organization. For example, goods from the production division may be sold to the marketing division, or goods from a parent company may be sold to a foreign subsidiary. Since the prices are set within an organisation (i.e., controlled), the typical market mechanisms that establish prices for such transactions between third parties may not apply. The choice of the transfer price will affect the allocation of the total profit among the parts of the company. This is a major concern for fiscal authorities who worry that multi-national entities may set transfer prices on cross-border transactions to reduce taxable profits in their jurisdiction. This has led to the rise of transfer pricing regulations and enforcement, making transfer pricing a major tax compliance issue for multi-national companies.
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What is Heineken pricing strategy?
Globally, Heineken utilizes the premium pricing policy. This is effective as the Heineken brand is unique to that of competitors.
What is the difference between price strategy and price tactics?
A price strategy defines the initial price and gives direction for price movements over the product life cycle. The price policy is a strategy set for a specific market segment, based on a well-defined positioning strategy. Price tactics used to fine-tune a base price are the following: discounts (such as cash, quantity, and functional or seasonal discounts); allowances (such as promotional allowances); and rebates. All three are ways to induce buyers to do something they might otherwise not do. Geographic pricing tactics (such as FOB origin, uniform delivered, zone, freight absorption, and basing-point pricing) all moderate the impact of shipping charges as a portion of the product price. Special pricing tactics (such as single-price tactics, flexible pricing, price lining, professional services pricing, leader pricing, odd-even pricing, bait pricing, price bundling, and two-part pricing) can be used for a variety of reasons. For example, a business might decide to introduce a new product at a high skimming price, but use some price tactics such as rebates or freight absorption to induce trial.
What is pricing policy explain factors involved in pricing policy?
Factors Involved In pricing PolicyThe pricing of the product involves consideration of the following factors:1. Cost: Cost data occupy an important place in the price setting process. Cost are two types fixed cost and variable cost. In the short period which a firm wants to establish itself. The firm may not cover the fixed costs but it must cover the variable costs. But in the long run, all costs must be covered. If the entire costs are not covered, the producer stops production consequently, the supply is reduced which in turn may lead to higher price.2.CompetitorsIf the business is a monopolist, then it can set any price. At the other extreme, if a firm operates under conditions of perfect competition, it has no choice and must accept the market price. The reality is usually somewhere in between. In such cases the chosen price needs to be very carefully considered relative to those of close competitors.(3) CustomersConsideration of customer expectations about price must be addressed. Ideally, a business should attempt to quantify its demand curve to estimate what volume of sales will be achieved at given prices
When is a market penetration pricing policy appropriate a.if a product is new and different b.if demand is highly elastic c.if demand is inelastic d.if there is no possibility of economies of scale?
b. when demand is highly elastic. (The penetration strategy is used when an elite market does not exist and demand seems to be elastic over the entire demand curve.)
Factors affecting marketing mix?
the target market would influence where the sweets were advertised and how they were promoted. Culture - would affect the type of products which could be developed and the style of advertising that was used. Also the type of outlets used and the channel of distribution would be affected by the culture and characteristics of the country. Competition - would affect the advertising used, pricing policy and where they sold their products in order to compete and be successful.
Which pricing policy adopted by Nike in south African country?
Which pricing policy adopted by nike in south African country?"
What is the transfer policy of infosys?
Transfer policy of infosys
What is the pricing policy on cakes?
about $6.00
What is transfer policy for ex-servicemen in banking?
There is no any transfer policy related to ex-sm in banks.
What is Heineken pricing strategy?
Globally, Heineken utilizes the premium pricing policy. This is effective as the Heineken brand is unique to that of competitors.
How do you answer what is good?
if a customer complanied about an assocaiate in your store pricing or a policy what would you do
What is Walmart associate transfer policy?
walmart policy on transfering
How do you answer 'What is good customer?
if a customer complanied about an assocaiate in your store pricing or a policy what would you do
What are the benefits of health insurance policy?
See the link on Pricing & Benefits for Calfornia
How do you transfer a policy in motor insurance?
Call your agent or policy services dept, and tell them which vehicle you no longer have and that you want to transfer that policy (if possible) to your new vehicle, they will take it from your first sentence, and happily assist you.
What is the meaning of pricing policy?
Pricing policy is the method by which a store manager say decides on a sale price for a good examples; 1. cost plus pricing : taking the cost price of the good and adding the desired profit margin 2. premium pricing : if a good is in high demand, ie something with a well known brand name, then a premium price can be set as people will want to purchase the item anyway.
What has the author Michael Gordon Webb written?
Michael Gordon Webb has written: 'The economics of energy' -- subject(s): Economic policy, Energy policy, Power resources 'Pricing policies for public enterprises' -- subject(s): Government business enterprises, Pricing
