A catalog merchant divides the country into regions. Every buyer in a particular region pays the same average shipping charge. The shipping charges differ from region to region, depending on how far the region is from the catalog merchant's main warehouse facility. The catalog merchant is using:
A) F.O.B. pricing.
B) Uniform delivered pricing.
C) Freight absorption pricing.
D) None of the above.

Question

Quizplus · Accepted Answer

The catalog merchant is using uniform delivered pricing because every buyer in a particular region pays the same average shipping charge, regardless of their specific location within that region. This is different from F.O.B. pricing, where the buyer is responsible for paying the shipping costs from the point of origin, and freight absorption pricing, where the seller absorbs some or all of the shipping costs.

A Catalog Merchant Divides the Country into Regions