Which of These Statements About Geographical Adjustments to Price Is

question 139

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 seller must pay for all transportation costs.
• C) Multiple-zone pricing is sometimes referred to as "spider web" pricing.
• D) Basing-point pricing methods have been used in industries where freight expenses are a significant 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.

---

Definitions:

Luxury Fashions

High-end, often designer-made, clothing and accessories that symbolize status and wealth.

E-Commerce

The buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.

The Internet

A vast global network of connected computers and servers that facilitate the exchange of data, communication, and access to information.

Customer Value

The perception of what a product or service is worth to a customer versus the possible alternatives, reflecting the benefits, quality, and satisfaction it delivers.