A Rhode Island-based catalog retailer features cast-iron skillets.Its customers in New England are charged one shipping rate,and customers west of the Rocky Mountains are charged a different rate.Customers in the Southeastern states are charged yet another rate.What kind of geographical pricing is the catalog using?
A) FOB origin pricing
B) FOB factory
C) zone pricing
D) freight absorption pricing
E) uniform delivered pricing

Question

Quizplus · Accepted Answer

The catalog retailer is using zone pricing by charging customers in different regions of the country different shipping rates.

A Rhode Island-Based Catalog Retailer Features Cast-Iron Skillets