The advantage of zone pricing to the seller and buyer is the shipping charges typically:
A)are not marked down during the off season.
B)complement the advertising allowances.
C)reflect more closely the cost of delivery.
D)result in a cumulative quantity discount.
E)are the same for all shipments,making it easy to calculate total price.

Question

Quizplus · Accepted Answer

Zone pricing reflects more closely the cost of delivery, benefiting both the seller and buyer by ensuring fair pricing. Option A is not applicable to the advantages of zone pricing. Option B is not related to shipping charges. Option D talks about cumulative quantity discount, which is not a feature specific to zone pricing. Option E is incorrect as zone pricing calculates shipping charges based on the distance between the origin and destination, resulting in different prices for different shipments.

The Advantage of Zone Pricing to the Seller and Buyer