Which of the following is true of FOB-origin pricing?
A) It is a strategy in which the company charges the same price plus freight to all customers.
B) It is a costly option for customers who are located near the company.
C) It charges all customers the freight cost from a base city to the customer location.
D) It is an expensive alternative for customers in distant locations.
E) It is a strategy in which the seller absorbs all or part of the freight charges.

Question

Quizplus · Accepted Answer

FOB-origin pricing means the buyer pays the freight costs from the shipping point, making it more expensive for customers located far from the seller.

Which of the Following Is True of FOB-Origin Pricing