A Pricing Strategy Where the Buyer Is Allowed to Deduct

question 276

Multiple Choice

A pricing strategy where the buyer is allowed to deduct freight expenses from the list price of the goods so the seller pays the transportation costs is referred to as

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

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Definitions:

Value Creating

The process of enhancing or increasing the worth of a product, service, or business.

Strategic Approaches

Methods or plans of action designed to achieve a long-term or overall aim in various contexts including business, negotiation, or conflict resolution.

Tangible Factors

Physical or material aspects that can be observed and measured in a decision-making process.

Intangible Factors

Elements that cannot be seen or touched but still significantly affect outcomes, such as reputation or brand value.