In an effort to find a middle ground between free- on- board pricing and uniform delivered pricing, many companies have turned to:
A) geographic pricing.
B) freight absorption pricing.
C) basing point pricing.
D) zone pricing.
E) none of the above

Question

Quizplus · Accepted Answer

Basing point pricing is a method where the seller designates a basing point and charges all customers the freight cost from that point, regardless of their actual distance from the point. This allows for a compromise between FOB and uniform delivered pricing as the seller absorbs some of the freight cost but the buyer still pays for the actual cost of transportation. Geographic pricing refers to adjusting pricing based on the location of the buyer, while zone pricing is also based on different geographic regions but typically involves setting different prices within each zone. Freight absorption pricing involves the seller paying for all or a portion of the freight cost, while none of the above are as effective at finding a middle ground as basing point pricing.

In an Effort to Find a Middle Ground Between Free-