If You Want the Consignee to Be Responsible for Goods

question 21

Multiple Choice

If you want the consignee to be responsible for goods while they are intransit you should ship products:

• A)FOB Destination
• B)FOB Origin
• C)Using Delivered Pricing
• D)Using Single Zone Pricing

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Definitions:

Fixed Cost

Expenses that remain constant regardless of the firm's production volume.

Output

The cumulative quantity of products or services generated by a corporation or nation.

AVC

Average Variable Cost is the total variable costs divided by the quantity of output.

Diminishing Returns

A principle in economics where each additional unit of input results in a progressively smaller increase in output.