Pricing Whereby the Buyer Absorbs All or Part of the Freight

question 115

True/False

Pricing whereby the buyer absorbs all or part of the freight costs is freight absorption pricing.

---

Definitions:

Zero-based Budget

A budgeting technique where all expenses must be justified for each new period, starting from a "zero base," rather than basing budgets on the previous year's expenditures.

Fixed Amount

A specific, unchanging quantity of money, goods, or services.

Strategic Planning

The process by which an organization defines its strategy, or direction, and makes decisions on allocating its resources to pursue this strategy.