The two general methods for quoting prices related to transportation costs are uniformed delivered pricing and _________.
A)regional index pricing
B)flexible scale pricing
C)unitary pricing
D)FOB origin pricing
E)FOB destination pricing

Question

Quizplus · Accepted Answer

FOB stands for "free on board" and refers to the point at which ownership and responsibility for goods shift from the seller to the buyer. FOB origin pricing means that the seller is responsible for transportation costs up until the goods are loaded onto a carrier at their origin. FOB destination pricing means that the seller is responsible for transportation costs up until the goods are unloaded from the carrier at their destination.

These two methods are commonly used in the transportation industry to quote prices for transportation costs. Uniformed delivered pricing and regional index pricing are not commonly used terms in this context. Flexible scale pricing and unitary pricing may be used in other industries, but do not specifically relate to transportation costs.

The Two General Methods for Quoting Prices Related to Transportation