Which of the Following Statements About Geographical Adjustments to Price

question 258

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 buyer subtracts the transportation costs from the list price.
• C)Multiple-zone pricing is sometimes referred to as "spider web" pricing.
• D)Basing-point pricing seems to have been used in industries where freight expenses are only a minor 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:

Ecological Service

Benefits to humans provided by natural ecosystems, including pollination, water purification, climate regulation, and nutrient cycling.

Freshwater Systems

Natural bodies of water that have low salt concentrations, such as rivers, lakes, streams, and underground aquifers, crucial for drinking water, agriculture, and habitats.

Nutrient Cycling

The movement and exchange of organic and inorganic matter back into the production of living matter, recycling elements and nutrients through the biosphere.

Hydroelectricity

The production of electricity using the energy generated from flowing or falling water, typically through dams.