Which of the Following Statements About Geographical Adjustments to Price

question 268

Multiple Choice

Which of the following 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 seller must pay for all transportation costs.
• C)Multiple-zone pricing is sometimes referred to as "spider web" pricing.
• D)Basing-point pricing methods have been used in industries where freight expenses are a significant 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:

Revolutionary War

A war fought from 1775 to 1783, in which the Thirteen American colonies won independence from Great Britain, leading to the establishment of the United States of America.

Avoided

Avoided signifies purposely staying away from or preventing an occurrence of a specific act, situation, or engagement.

Indentured Servants

Workers who agreed to work for a specific period of time in exchange for transportation to the New World, food, accommodation, and a new life in the colonies, primarily during the 17th and 18th centuries.

Irish Immigrants

refers to people from Ireland who moved to another country, especially to the United States in the 19th and early 20th centuries, often escaping famine and seeking better economic opportunities.