Scenario 19

question 120

Multiple Choice

Scenario 19.2 Use the following to answer the questions.
The BASF Chemical Company in Germany has developed a new rubberized coating. The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches. BASF plans to market the product directly to businesses that manufacture the casings for these types of products. BASF currently uses a system of salespeople headquartered in Germany, while its primary business customers are in China.
Refer to Scenario 19.2. If BASF were to price its product in barrels from the factory, before it is loaded on the carrier, this would be an example of ____ pricing.

• A) buy-back allowance
• B) geographic
• C) F.O.B destination
• D) F.O.b. factory
• E) base-point

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Definitions:

Disburses

The act of paying out or distributing funds, typically related to the operational expenses or investment payouts of a company.

Average Amount

A statistic that represents the central or typical value of a set of numbers, calculated by dividing the sum of all values by the number of values.

BAT Model

A model used in negotiation that stands for Best Alternative To a Negotiated Agreement, helping parties determine their course of action should negotiations fail.

Disbursements

Money paid out by a business or an organization for various purposes, including expenses, investments, and dividends.