When buyers and sellers are separated by vast distances, geographical adjustments may be made to reflect the cost of transportation of the products from sellers to buyers. Which method of quoting prices would be chosen by a seller who wants to maximize profits?
A)single-zone pricing
B)multiple-zone pricing
C)FOB origin pricing
D)uniform delivered pricing

Question

Quizplus · Accepted Answer

FOB origin pricing allows the seller to maximize profits by transferring the transportation cost responsibility to the buyer, meaning the buyer pays for shipping from the seller's location.

When Buyers and Sellers Are Separated by Vast Distances, Geographical