Which of the following statements about geographical adjustments to price is correct?
A)Multiple-zone pricing is sometimes referred to as "postage-stamp" pricing.
B)In FOB origin pricing, the seller selects the mode of transportation.
C)Basing point pricing seems to have been used in industries where freight expenses are a significant part of the total cost to the buyer.
D)In FOB with freight allowed pricing, the seller adds the transportation costs to the list price.

Question

Quizplus · Accepted Answer

Basing point pricing is commonly used in industries where freight expenses are a significant part of the total cost to the buyer. Multiple-zone pricing is not commonly referred to as "postage-stamp" pricing as this term is specifically used to describe uniform pricing regardless of distance. FOB origin pricing allows the buyer to select the mode of transportation while FOB with freight allowed pricing means the seller includes transportation costs in the list price.

Which of the Following Statements About Geographical Adjustments to Price