Donegal Sweaters, a company that manufactures farm style wool sweaters, has designated a shipping point from which to calculate all freight charges. It then charges its customers the freight costs from that point (even if the goods were shipped from another location). Which type of pricing is Donegal Sweaters using?
A)freight absorption
B)uniform delivered
C)zone
D)basing-point

Question

Quizplus · Accepted Answer

Donegal Sweaters is using basing-point pricing, as it designates a shipping point from which all freight charges are calculated, regardless of where the goods are actually shipped from.

Donegal Sweaters, a Company That Manufactures Farm Style Wool Sweaters