A national manufacturer of lighting fixtures has six warehouses and has a pricing policy of charging freight from the closest warehouse to the customer,regardless of where parts are shipped.For instance,if the customer is in Vancouver,British Columbia,the closest warehouse to the customer is in Seattle,Washington.If the ordered car part actually comes from the Alabama warehouse,the customer still pays freight from Seattle.The manufacturer uses _____ pricing.

Question

Quizplus · Accepted Answer

The manufacturer uses basing-point pricing, where the freight charge is calculated from a specific location (the closest warehouse) regardless of where the product is actually shipped from.

A National Manufacturer of Lighting Fixtures Has Six Warehouses and Has