When buyers and sellers are separated by vast distances,geographical adjustments may be made to reflect the cost of transportation of the products from sellers to buyers.Which method of quoting prices would be chosen by a seller who wants to maximize profits?
A)uniform delivered pricing
B)single-zone pricing
C)multiple-zone pricing
D)FOB origin pricing

Question

Quizplus · Accepted Answer

FOB origin pricing would be the best choice for a seller who wants to maximize profits when buyers and sellers are separated by vast distances. This pricing method requires the buyer to pay for transportation costs, allowing the seller to set a lower price for the product. The other methods (uniform delivered pricing, single-zone pricing, and multiple-zone pricing) include transportation costs in the price, which could result in higher prices and lower profits for the seller.

When Buyers and Sellers Are Separated by Vast Distances,geographical Adjustments