Geographically Dispersed Sellers Often Result in Significant Freight Costs

question 137

Essay

Geographically dispersed sellers often result in significant freight costs.Name and describe the five types of geographic pricing tactics that can be selected by a marketing manager to moderate the impact of freight costs on its more dispersed customers.For each tactic defined,specify the circumstances that would prompt the selection of that geographic pricing tactic.

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Definitions:

Amortize

To amortize means to gradually pay off or write down the cost of an asset or debt over a period, often through regular payments.

Immediate Write-Off

The process of fully expensing an asset or expenditure in the current period instead of spreading its cost over its useful life.

Capitalize

To record an expenditure as an asset on the balance sheet rather than expensing it, in order to spread the cost over its useful life.

CICA Handbook

The comprehensive guide published by the Canadian Institute of Chartered Accountants containing accounting and auditing standards in Canada.