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

Question

Quizplus · Accepted Answer

Basing point pricing is used in industries where freight expenses significantly impact the total cost to the buyer, as it allows for a standardized freight charge from a specific location.

Which of the Following Statements About Geographical Adjustments to Price