While Freight Rates Are Often Based on Very Complicated Pricing

question 26

Multiple Choice

While freight rates are often based on very complicated pricing systems, in general, the primary freight price factor is based on which of the following attributes?

• A) damage record
• B) on-time delivery
• C) door-to-door service
• D) speed of shipment
• E) consolidation capabilities

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Definitions:

Basing-Point Pricing

A pricing system where the delivered price of goods is determined from a specific geographic location or "base point".

FOB Origin Pricing

A pricing term indicating that the buyer assumes shipping costs from the seller's location and takes ownership of the goods once shipped.

Freight Expenses

Costs associated with transporting goods, including shipping, handling, and insurance fees.

Multiple-Zone Pricing

Multiple-Zone Pricing is a pricing strategy where a business charges different prices for its products or services in different geographic areas, based on factors like transportation costs and local market conditions.