Another Name for Freight-Absorption Pricing Is

question 124

Multiple Choice

Another name for freight-absorption pricing is

• A) factory pricing.
• B) FOB absorption pricing.
• C) FOB with freight-allowed pricing.
• D) basing-point pricing.
• E) FOB origin pricing.

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Definitions:

Freight Costs

Expenses associated with transporting goods from one place to another.

September

Refers to the ninth month of the year in the Gregorian calendar.

Inventory Cost

The total cost associated with buying or producing goods, including purchase price, materials, labor, and overhead, until they are sold.

Sales

The activities involved in selling goods or services to customers, including the negotiation of sales agreements and the collection of revenue.