If a Manufacturer Designates a Shipping Point from Which to Calculate

question 73

Multiple Choice

If a manufacturer designates a shipping point from which to calculate all freight charges and charges customers the freight costs from that point (even if the goods were shipped from another location) ,which type of pricing is the manufacturer using?

• A)freight absorption
• B)uniform delivered
• C)zone
• D)basing-point

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Definitions:

Discount Rate

In finance, the interest rate used to discount future cash flows of a financial instrument to present value, reflecting the opportunity cost of capital.

Payments

The act of transferring money or value from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Years

Units of time measuring 365 days (or 366 in a leap year), often used to track age, duration, or periods of investment.

Effective Annual Rate

The interest rate on a loan or financial product restated on an annual basis, accounting for compounding over the term.