A national manufacturer of car parts has six warehouses and has a pricing policy of charging freight from the closest warehouse to the customer, regardless of where parts are shipped from. Which pricing does the manufacturer use?

Question

Quizplus · Accepted Answer

The manufacturer uses basing-point pricing, which means charging freight from a specific point (in this case, the closest warehouse), regardless of the actual shipping origin.

A National Manufacturer of Car Parts Has Six Warehouses and Has