Grainger is a large wholesaler of industrial and commercial equipment, component, and supplies. If the purchase order is for more than $800, the buyer must pay all shipping costs before Grainger will ship the item. This is an example of:
A) freight-absorption pricing
B) uniform delivered pricing
C) regional pricing
D) FOB factory pricing
E) zone-delivered pricing

Question

Quizplus · Accepted Answer

FOB (Free On Board) factory pricing means the buyer is responsible for the shipping costs from the factory. In this scenario, since the buyer must pay all shipping costs for orders over $800 before Grainger will ship the item, it aligns with the concept of FOB factory pricing, where the buyer takes responsibility for the goods once they leave the seller's premises.

Grainger Is a Large Wholesaler of Industrial and Commercial Equipment