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:

Thoracic Duct

The largest lymphatic vessel in the human body, responsible for transporting lymph and chyle from the lymphatic system into the circulatory system.

Lymphatic System

A network of tissues and organs that help rid the body of toxins, waste, and other unwanted materials.

Nutrient Absorption

Nutrient absorption is the process through which nutrients from food are taken up into the body's cells from the gut.

Lingual Tonsil

Collection of lymphoid tissue on the posterior portion of the dorsum of the tongue.