A Price Tactic That Requires the Buyer to Absorb the Freight

question 130

Multiple Choice

A price tactic that requires the buyer to absorb the freight costs from the shipping point is called ______________.

• A) value-based pricing
• B) FOB origin pricing
• C) uniform delivered pricing
• D) zone pricing

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Definitions:

Performance

The act of executing or accomplishing work, tasks, or duties, often measured against predefined standards.

Prepaid Rent

Represents the payment of rent in advance before it is due, recorded as an asset on the balance sheet until it is expensed.

Deferral

An accounting concept where revenue or expense is recognized at a date later than the point when cash was originally exchanged.

Accrual

An accrual occurs when revenue has been earned or an expense has been incurred but has not been recorded.