A Price Tactic That Requires the Purchaser to Absorb the Freight

question 113

Multiple Choice

A price tactic that requires the purchaser to absorb the freight costs from the shipping point is called _____.In this case,the farther buyers are from sellers,the more they pay because transportation costs generally increase with the distance merchandise is shipped.

• A) basing-point pricing
• B) zone pricing
• C) uniform delivered pricing
• D) freight absorption pricing
• E) FOB origin pricing

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Definitions:

Disposable Income

The financial capabilities households have for saving and spending endeavors post income tax deductions.

Consumption

The use of goods and services by households, including the acquisition of goods and services for personal use or ownership.

Induced Consumption

The portion of consumer spending that increases or decreases as disposable income increases or decreases, respectively.

Disposable Income

The collective fiscal pool available to households for spending and saving post income tax engagements.