When the Seller Takes on Part or All of the Cost

question 21

Multiple Choice

When the seller takes on part or all of the cost of shipping,it is called ________.

• A)freight absorption
• B)F)O.B.factory
• C)F)O.B.origin
• D)uniform delivered
• E)basing-point

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Definitions:

Cross-Rate

The implicit exchange rate between two currencies (usually non-U.S.) quoted in some third currency (usually the U.S. dollar).

Exchange Rate

The worth of a certain currency depicted through the value of a different currency.

Foreign Currency Approach

A method in international finance that involves analyzing business or investment decisions based on their impact in foreign currency terms.

Inflation Rate

The increase in the average price levels of goods and services, resulting in reduced purchasing capacity.