Geographical Pricing Map B
-pricing strategy where the buyer is allowed to deduct freight expenses from the list price of the goods so the seller pays the transportation costs is referred to as

Question

Quizplus · Accepted Answer

FOB with freight-allowed pricing allows the buyer to deduct freight expenses from the list price, which means the seller pays the transportation costs. This is different from FOB origin pricing (choice C) where the buyer pays for transportation costs. Basing-point pricing (choice D) requires the buyer to pay transportation costs from a specific location (basing point), and FOB factory pricing (choice A) refers to the seller being responsible for transportation costs until the goods are loaded onto a carrier at their factory or warehouse. FOB absorption pricing (choice B) does not exist as a pricing strategy.