When a Seller Uses "Zone Pricing," All Customers Who Are

question 153

True/False

When a seller uses "zone pricing," all customers who are in the same zone are charged the same freight charge-even if the actual shipping cost varies.

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Definitions:

Dividends Payable

liabilities representing the amount of dividends declared by a company's board but not yet paid to shareholders.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been received but not yet paid for.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash transactions happen.

Cash Basis

An accounting method where revenues and expenses are recognized when cash is received or paid, rather than when earned or incurred.