In the Context of Account Classification, Unlike ABC Analysis, Portfolio

question 53

Multiple Choice

In the context of account classification, unlike ABC analysis, portfolio analysis:

• A) does not require statistical analysis.
• B) uses two factors to analyze accounts.
• C) does not require data manipulation.
• D) analyzes accounts based on the level of sales potential.
• E) is the simplest and most often used method for classifying accounts.

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Definitions:

Freight-Absorption Pricing

A pricing strategy where the seller absorbs all or part of the freight charges to make their product more attractive to distant buyers.

FOB Absorption Pricing

A pricing strategy where the seller absorbs all or part of the freight charges to deliver goods, making the price including transportation costs.

Basing-Point Pricing

Selecting one or more geographical locations (basing point) from which the list price for products plus freight expenses are charged to the buyer.

Uniform Delivered Pricing

A pricing strategy where a company charges the same shipping price to all customers, regardless of their geographic location.