Customers Located Close to a Firm Are Less Likely to Benefit

question 52

True/False

Customers located close to a firm are less likely to benefit from FOB-origin pricing than customers located farther away.

---

Definitions:

Fixed Costs

Expenses that do not vary with production volume, such as rent and salaries.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials and labor costs.

Outside Provider

An external entity or organization that supplies goods or services to another business or individual.

Special Order

A one-time or unique purchase order for goods or services, often tailored to specific requirements outside of regular offerings.