Which of These Statements About Geographical Adjustments to Price Is

question 13

Multiple Choice

Which of these statements about geographical adjustments to price is most accurate?

• A) In FOB origin pricing, the seller selects the mode of transportation.
• B) In FOB with freight-allowed pricing, the buyer subtracts the transportation costs from the list price.
• C) Multiple-zone pricing is sometimes referred to as "spider web" pricing.
• D) Basing-point pricing seems to have been used in industries where freight expenses are only a minor part of the total cost to the buyer.
• E) Geographical adjustments can be subject to government regulation if the firm cannot supply objective data (lists of mountains, rivers, weather conditions, etc.) explaining why those adjustments need to be made.

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Definitions:

Sourcing Information

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