04th July 2009
A transfer price is the price is “the price at which goods or services are transferred form one process or department to another or form one member of a group to another ,
Transfer pricing is used when divisions of an organization need to charge other ...
04th July 2009
1. What is Divisionalisation?
In general a large organization can be structured in one or two ways: functionally (all activities of a similar type within a company, such as production, sales, research, are placed under the control of the appropriate depa...
13th June 2009
The optimum pricing model.
Profit analysis.
• Microeconomic theory suggests that as output increases, the marginal cost (MC) per unit might rise (due to the low of diminishing returns) and whenever the firm is faced with a downward sloping demand cu...
13th June 2009
ECONOMIC THEORY OF PRICING.
Demand and market.
Economic theory suggests that the volume of demand for a good in the market as a whole influenced by variables such as the following.
The price of the good
The price of other goods
The size & distribu...
13th June 2009
Factors influencing the pricing decision.
Markets.
The price that an organization can charge for its products will be determined to a greater or lesser degree by the market in which it operates. Here are some familiar terms that might feature as back...
13th June 2009
PRICING.
Introduction.
Historically price was the single most important decision made by the sales department but in modern marketing philosophy price, whilst important, is not necessarily the predominant factor. Modern businesses seek to interpret a...
17th February 2009
Empirical testing of the EMH.
(1).Anomalies or regularities.
An anomaly or regularity is where empirical evidence contradicts the EMH. For example, it may be the case that if a share price rises one day, it is more likely to rise the nest day and if it ...
17th February 2009
The efficient market hypothesis.
(1).Stock prices follow a random walk.
When researchers have examined stock prices movement for quoted companies they have observed that the price movements seem to follow a random pattern. In other words, stock price mo...
01st February 2009
APPLICATION OF THE CAPM TO PROJECT APPRAISAL .
Logic and weaknesses.
The capital asset pricing model was originally developed to explain how the returns earned on shares are dependent on their risk characteristics. However, its greatest potential use in...
12th January 2009
(1). Mixing many risky securities.
Portfolio theory has its roots in the management of investors’ portfolios of stock exchange investments and fixed interest stocks. The following sections show how the attempt to identify an optimal portfolio for inves...
12th January 2009
Portfilio Theory.
(1). Introduction.
The analysis of risk and uncertainty concentrates in some way on altering future returns to allow for uncertainty of outcome (e.g. using probability distributions of returns). An alternative approach is to allow for ...
12th January 2009
PORTFOLIO MANAGEMENT.
INTRODUCTION.
(1).Definition .
Asset allocation is the process of deciding how to distribute an investor’s wealth among different countries and asset classes for investment purposes.
This process will be guided by the investor...
05th January 2009
CIMA defines a code as "a system of symbols designed to be applied to a classified set of items to give a brief accurate reference,facilitating entry,collation and analysis"
A cost cording system is therefore based on the selected cost classifications.I...
15th December 2008
A unit trusts is a fund organization which mobilies savings /funds from small investors by selling units in the market. Therefore this is the collective or mutual fund. Sales proceeds of units or funds are then invested in the share/stock market. Units ar...
