When a Company Charges the Same Rate to Ship a Product

question 149

Multiple Choice

When a company charges the same rate to ship a product anywhere in Asia,it is using which form of geographic pricing?

• A) FOB delivered
• B) FOB factory
• C) FOB origin
• D) uniform-delivered
• E) basing-point

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Definitions:

Continuously Compounded Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Simple Interest

Interest earned only on the original principal amount invested.

Annually Compounded Interest

Interest on a loan or investment that is calculated once a year, adding the interest to the principal sum and basing future interest calculations on this new principal.

Amortized Daily Interest

Interest on a loan computed each day using the balance of the loan on that day, leading to a variable interest charge per billing period.